European shares muted on auto pressure, set for weekly loss
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Mercedes car earnings plunge as China shuns luxury
Electrolux slides on US woes and Chinese competition
Signify shares soar as largely in line Q3 provides relief
Updated at 0845 GMT
By Paolo Laudani and Ankika Biswas
Oct 25 (Reuters) -Europe's main stock index swung between losses and gains on Friday, and was set for a weekly fall, with a handful of weak corporate earnings from auto-related companies such as Mercedes-Benz and Valeo and appliances-maker Electrolux denting investor sentiment.
The pan-European STOXX 600 .STOXX was up 0.01% as of 0913 GMT, on track for its first weekly loss in three, with real estate stocks among the worst-hit sectors for the week.
Auto stocks .SXAP shed 0.9% on the day, as Germany's Mercedes-Benz MBGn.DE fell 3.7% after third-quarter earnings in core car division missed estimates by a wide margin.
Valeo VLOF.PA added to the sector's woes, shedding 7.5% as the automotive supplier cut its annual sales guidance for the second time this year.
Electrolux ELUXb.ST slumped 15% after missing third-quarter earnings expectations on continuing U.S. losses and rising competition from China.
French spirits-maker Remy Cointreau RCOP.PA shed 1% after dropping its forecast that its full-year sales would gradually recover after quarterly sales fell more than expected.
On the other hand, British lender NatWest NWG.L climbed 4.5% after raising its income forecast for 2024, helping the banks index .SX7P top sectoral gainers.
"Expectations were pretty low going into the earnings season, but the vibe we're getting from these earnings is that the economy is weakening," said Daniela Hathorn, senior market analyst at Capital.com.
"But companies' profitability is holding up pretty well, which is setting the mood for investors (and for the STOXX 600 to) comfortably hold around current levels."
Of the STOXX 600 companies that have reported third-quarter earnings, 35.3% beat estimates versus the typical beat rate of 54%, LSEG data showed earlier this week.
Equities have struggled of late, with the STOXX 600 losing momentum after hitting record highs multiple times this year, as investors navigate corporate earnings, the global rate-cut trajectory and the upcoming U.S. elections.
A survey showed German business morale improved more than expected in October, offering hope for some respite towards the year-end as the economy battles with industrial woes and weak global demand.
Meanwhile, three European Central Bank officials on Thursday tried to cool speculation on bigger rate cuts, urging the ECB to proceed gradually or at least keep its options open.
Among other earnings, lights-maker Signify LIGHT.AS jumped 8% and topped the STOXX as a largely in-line quarterly report and expectations of cost-cutting measures provided relief.
Hexagon HEXAb.ST was up 6% after the Swedish industrial technology group said it is mulling a spin-off of its Asset Lifecycle Intelligence business.
Auto stocks sputter https://reut.rs/3YN55AB
Reporting by Paolo Laudani in Gdansk and Ankika Biswas in Bengaluru; Editing by Varun H K and Mrigank Dhaniwala
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
