Europe midday: Stocks mixed on earnings, German data and Greek debt
European stocks were mixed as better-than-forecast earnings from companies, including Actelion and SAP, offset an unexpected fall in German economic confidence and concerns over Greek debt.
DJ EURO STOXX 50
5,008.17
23:59 23/04/24
Sap AG
€176.82
09:00 24/04/24
Xetra DAX
18,204.23
09:00 24/04/24
Actelion gained as it raised its full-year forecast after quarterly profit surpassed analysts’ estimates.
SAP’s shares climbed after reporting first-quarter sales that beat forecasts, supported by a weaker euro.
L’Oreal SA’s first quarter sales were also boosted by a weak euro with a 14% increase, sending shares higher.
On the downside for markets, ZEW’s index for German economic sentiment fell to 53.3 in April from 54.8 a month earlier, compared to the expected reading of 55.3.
"The current weakness of the world economy is dampening export prospects and reducing the scope for further improvements of the economic situation in Germany," ZEW President Clemens Fuest said.
Greek debt fears escalated as an influential investor predicted the nation will be “kicked out” of the Eurozone unless it agrees to its creditors demands.
“If Greece does not capitulate, Europe has no choice but to kick Greece out...,” Larry Fink, the head of US investment management giant BlackRock, said at a Singapore conference.
Greece’s finance minister, however, told reporters outside the Ministry of Finance on Tuesday that talks with creditors are going “very well”, according to Greek newspaper Enikos.
The European Central Bank is said to be looking into measures to rein in emergency liquidity assistance to Greek banks, Bloomberg reported.
Athens on Monday issued a decree that requires local governments to transfer balances to the central bank. The Greek government owes the International Monetary Fund debt repayments on 1 May and 12 May.
The euro was down 0.64% to $1.0669 in morning trade.
Rio Tinto edges lower
Rio Tinto declined after posting an increase in first quarter iron production that trailed forecasts.
Publicis Groupe, the French parent company of advertising agency Saatchi & Saatchi, jumped after reporting a 32% rise in first quarter sales that beat analysts’ expectations.
Credit Suisse Group AG slid over concerns the bank may have to raise capital as analysts highlighted a drop in the group’s key capital ratio measure and a poor performance in areas of its investment banking division.
Brent crude fell 0.55% to $63.10 per barrel at 12:00 BST and West Texas Intermediate dropped 0.31% to $57.70.