The European Tech Sector Struggles on the Stock Market
European stock markets experienced a decline on Wednesday, with the luxury sector taking a hit following weak results from LVMH, which weighed on the sector. Additionally, a series of disappointing corporate reports in other parts of the market such as the banking sector added to the pessimistic sentiment, as reported by Reuters and CNBC.
The pan-European Stoxx 600 index fell by 0.6%, with the technology sector recording the largest drop of 2.4%.
ASM International Stock Prices Drop Despite Strong Second Quarter
Shares of Dutch technology developer ASM International fell by 9.4% despite higher profit indications in the second quarter, as orders for the second quarter exceeded analysts’ expectations.
Stock prices of other companies in the semiconductor sector, such as BESI and ASML, also declined by 8.5% and 3.4% respectively.
Stock Market Performance
The London benchmark FTSE 100 is down by 0.17% to 8153.69 points. The German DAX dropped by 0.92% and closed the day at 18,387.146 points. The French CAC 40 decreased by 1.12% and ended the trading day at 7513.73 points.
Temenos stocks, on the other hand, are on the rise.
Stock Market Update: Luxury Companies Facing Challenges
Shares in luxury companies took a hit today, with several major players experiencing declines. Swiss banking software company saw a 5.6% drop in its stock price after revising its annual outlook downwards. The company cited the impact of a report from short seller Hindenburg Research on its performance in the first half of the year.
LVMH, the world’s largest luxury goods company, saw its stock price fall by 4.7% after failing to meet sales expectations in the second quarter. Shares of Christian Dior, part of the company’s fashion and leather goods division, also dropped by 4.7%. Other luxury sector giants such as Kering, Hermes, and Hugo Boss also experienced declines.
врозоната е спаднал между 2,1% и 4,5%.
European Creditors Write Off 0.5%
European creditors have written off 0.5%, causing Deutsche Bank’s books to decrease by 8.3% after the German bank announced its first loss in four years in the second quarter due to provisions of 1.3 billion euros set aside for an investor lawsuit.
The reporting season in Europe and the USA has started off on a volatile note, with the Stoxx 600 index under pressure amid mixed corporate data.
On a macroeconomic level, the preliminary composite Purchasing Managers’ Index from HCOB showed that business activity growth in the Eurozone has fallen between 2.1% and 4.5%.
Financial Market Report
This month, the stock market has taken a hit as the slight expansion of the dominant service industry in the bloc failed to compensate for the deeper slowdown in industrial producers.
Corporate News
The share price of Iveco Group has dropped by 14.5% after the Italian manufacturer of trucks and buses announced a 4% decrease in its operating profit for the second quarter.
On the other hand, the share price of the Spanish bank Santander has increased by 3% as the second largest bank in the eurozone raised its profitability targets.
The Strong Growth of Retail Banking Boosts Business
Thanks to a strong increase in its core retail banking business, the company has seen significant growth in recent months. This growth has led to increased profits and a positive outlook for the future.
For more news and updates, be sure to follow Investor.bg and Google News Showcase for the latest information on the company’s performance and future prospects.
