European Stock Market Ends Session with Decline
The Pan-European Stoxx 600 index recorded its fourth consecutive losing session on Thursday. European stock markets ended the session on Thursday with a decline, as a persistent sell-off of chip manufacturers’ shares limited gains, driven by some positive corporate earnings reports, and investors were influenced by the European Central Bank’s (ECB) decision to leave interest rates unchanged, Reuters and CNBC report.
European Stock Markets Show Modest Gains
The FTSE 100 benchmark in London rose by 0.21% to a level of 8204.89 points. The German DAX increased by 0.45% and ended the session at 18,354.76 points. The French CAC 40 added 0.21% to a level of 7586.55 points.
ECB Keeps Interest Rates Unchanged
The European Central Bank kept its interest rates unchanged as expected, but announced that the September meeting will be “broadly open” after lowering its forecasts for the Eurozone economy and predicting that inflation will continue to slow down.
Yield on government bonds fell by 0.2% and remained in the red territory for the fourth consecutive session.
European Markets Facing Decline
The European markets are experiencing a decrease in shares, while the Euro has dropped by 0.2% against the Dollar.
Tech Sector Continues to Decline
The technological index has seen a decrease for the fourth consecutive session, with a drop of 1.8%. Companies like ASML, ASM International, and BE Semiconductor are among the worst performers in Thursday’s session.
Chip Manufacturers Under Pressure
Chip manufacturers worldwide faced pressure on Wednesday following reports that the US has informed its allies about considering the strictest trade restrictions available in their punitive measures against Chinese companies.
Automotive Sector Sees Growth
The automotive sector saw a growth of 1.2% on the flip side, with Volvo Cars’ stocks rising by 11% after the Swedish car manufacturer announced higher profits than expected for the second quarter.
EssilorLuxottica Stocks Rise
EssilorLuxottica’s stock price increased by 1.5% after the news that the company, the parent company of Meta (formerly Facebook), is considering acquiring a stake in Ray-Ban’s manufacturer.
AB Volvo Reports Higher Profits
Swedish truck manufacturer AB Volvo reported a growth of 5.9% after announcing a higher-than-expected increase in its operational profits.
Publici’s Success Story
Publici, a chip manufacturer, has also seen success in the market, with their innovative products gaining popularity among consumers worldwide.
Positive Results for Swedish Companies
Stock prices of various Swedish companies have seen an increase following better-than-expected earnings reports for the second quarter. French advertising company saw a 3% increase in their stock prices after surpassing their organic profit expectations.
Medical equipment manufacturer Getinge saw a significant 10.7% increase in their stock prices after exceeding earnings expectations for the second quarter. Similarly, Swedish real estate platform operator Hemnet saw a 13.5% increase in their stock prices after announcing better-than-expected results for the second quarter.
Husqvarna’s stock prices also rose by 13.2% after the Swedish garden company announced positive results for the second quarter.
Decline in Sales for Equipment Manufacturer
An equipment and tools manufacturer reported a 9% decrease in sales for the quarter due to cautious consumer spending.
Nokia Reports Decrease in Profit
Finnish telecommunications equipment manufacturer Nokia saw a 5% decline after announcing a 32% drop in their quarterly profit.
ABB’s Stocks Drop
ABB’s stocks fell by 5.6% as the revenue of the Swiss engineering group in the second quarter did not meet expectations.
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