US AND EUROPE EQUITY ENDED ON BRIGHTER NOTE
The Dow Jones closed 0.2% higher, reaching a new high on strong earnings reports after Amex shares rose more than 6% with the company reporting better-than-expected earnings and revenues. Meanwhile, S&P was slightly down to end at 4,545 and the Nasdaq fell 0.9% dragged down by Intel and Snap. Snap sank around 26% after the social-media company said it expects growth to slow following new guidelines of Apple’s IOS privacy that will impact company advertisements. Intel also plunged around 12% after the company reported weaker-than-expected sales as computer shipments were impacted by components shortage. Still, S&P (+1.6%), Nasdaq (+1.3%), and Dow Jones (+1.1%) closed the week with gains.
European stock markets ended the week on a bright note, with the German DAX finishing 0.5% higher and the pan-European Stoxx 600 adding 0.6%, as investors across the globe welcomed a surprise interest payment by China’s debt-ridden property developer Evergrande, while eyeing another round of corporate earnings results. L’Oreal jumped 5.1% as Q3 sales growth largely beat market estimates, while Renault added 0.6% as the carmaker maintained its full-year operating margin guidance despite higher estimated losses in the second semester and after posting a 13.4% drop in Q3 revenues to €9 billion. On the data front, UK consumer morale deteriorated to its weakest level since February, while the country's retail trade unexpectedly declined for a fifth month. Meanwhile, the Eurozone flash composite PMI declined to a 6-month low of 54.3, reflecting the impact of soaring prices in Europe’s private sector.
The FTSE 100 closed 0.2% up at 7,205 on Friday, recovering from a slight decline on Thursday. InterContinental reported a sharp jump in third-quarter room revenue after a busy summer, with the company recovering closer to pre-pandemic levels. Meanwhile, poor data showed British consumers at their most downbeat since February, due to rising energy prices and Covid-19 cases, while the country's retail trade unexpectedly declined for a fifth month. The FTSE 100 ended 0.4% lower on the week.
The CAC 40 closed 0.7% up at 6,734, the highest in over 6 weeks, in line with its European peers. L’Oreal rose 5.1% after confirming a strong Q3 performance, particularly in Asia, while Vivendi advanced 1.2% backed on surpassing growth expectations, driven by Canal Plus sales. At the same time, Sanofi rose 1.4% following phase 3 success of its new drug, Dupixent. Furthermore, Renault unexpectedly rebounded from early losses this session following the announcement that the car manufacturer would cut output by 500,000 cars this year to maintain the firm’s profit outlook due to higher car prices and cost cuts.
The FTSE MIB rose 0.2% to close at 26,572 on Friday. Among single stocks, A2A (+2.4%) and CNH Industrial (+2.1%) were in the spotlight boosted by the overall good performance of automotive and industrial sectors in Europe. The key stock index rose 0.3% in the week, the third consecutive days with gains.
