Stock Market

European stock markets ended the last week of October with the highest gain since mid-March

As a result of trading on Friday, October 28, European stock indices showed multidirectional changes. The indicators completed the week with the highest rise since mid-March against the backdrop of the publication of quarterly company reports.

The composite index of the largest companies in the region Stoxx Europe 600 rose by 0.14% and amounted to 410.76 points. Over the week, the indicator rose by 3.5%, which was the best result since mid-March.

The German DAX index rose on Friday by 0.24%, the French CAC 40 rose by 0.46%. Meanwhile, Britain’s FTSE 100 shed 0.37%, Italy’s FTSE MIB shed 0.27% and Spain’s IBEX 35 shed 0.1%.

Airbus (EPA:AIR) SE added 3.7%. The European Aerospace Corporation in the 3rd quarter increased its net profit by 65%, earnings before taxes and interest payments (EBIT) – by 37%, revenue – by 27%.

Porsche AG (F:P911_p) rose 0.7%. The German luxury car manufacturer reported a significant increase in operating profit and revenue for the 9 months of this year.

Swiss reinsurance company Swiss Re posted a net loss in the first 9 months of this year due to a large number of insurance claims related to Hurricane Ian in the US. Shares of Swiss Re lost 2.4%.

Net profits of oil producers Equinor ASA and Eni SpA soared 6-fold and 5-fold, respectively, last quarter on rising energy prices. The value of shares of the first company increased by 0.5%, the second – by 1.7%.

The German carmaker Volkswagen (ETR:VOWG) AG (VW) significantly increased its operating profit and revenue in July-September due to the growth in sales of premium brand cars. The stock, however, tumbled 1.7% as VW’s after-tax profit fell to 2.13 billion euros from 2.9 billion euros after one-off write-downs related to Russia and Porsche’s IPO. AG in the amount of about 1.6 billion euros.

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Capitalization of NatWest Group Plc fell by 9.2%, the company was among the leaders of the decline in the Stoxx Europe 600 index. The British bank (formerly the Royal Bank of Scotland) increased pre-tax profit in the 3rd quarter to 1.09 billion pounds 26 billion) from 976 million pounds in the same period a year earlier, but the figure was worse than the consensus forecast of 1.24 billion pounds.

Among the components of the Stoxx 600, shares of Austrian oil and gas group OMV led the way, up 9.3%. The company recorded an operating profit in July-September of 3.5 billion euros, which was 9% higher than the consensus forecast, and announced its intention to pay a special dividend of 2.25 euros per share.

The German economy in the 3rd quarter grew by 0.3% compared with the previous three months and by 1.2% in annual terms. Analysts on average expected the first indicator to decrease by 0.2% and the second to increase by 0.8%.

French GDP in July-September increased by 0.2% qoq and 1.2% y/y, which coincided with market expectations.

French consumer prices, aligned with European Union standards, jumped 7.1% year-on-year in October after rising 6.2% in September, according to preliminary data. Analysts surveyed by Trading Economics expected, on average, a much more moderate acceleration of inflation – up to 6.4%.

The Spanish economy grew 0.2% qoq and 3.8% yoy last quarter. Analysts polled by The Wall Street Journal expected growth of 0.3% and 4%, respectively.

Inflation in Spain in October was 7.3% in annual terms, dropping to a minimum since January compared to September’s level of 9%, preliminary data showed. Growth was much weaker than the 8.4% rise expected by analysts.

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