European Stocks Gain Momentum; Siemens Outperforms with Strong Results

By Cot-Trading - Thursday, November 14, 2024 - No Comments

The eurozone’s economy expanded more than anticipated in the third quarter compared to the previous period, with data released on Thursday confirming a 0.4% growth. While this was above forecasts, it highlighted ongoing vulnerabilities within the eurozone economy.

In contrast, eurozone industrial production experienced a sharper-than-expected decline in September, with Germany posting the steepest decrease among the region’s major economies. This 2.0% drop surpassed expectations of a 1.4% decrease, and last month’s initially strong 1.8% rise was revised down to 1.5%, suggesting that the anticipated recovery may be delayed further.

Adding to investor concerns is the possibility of a trade conflict with the incoming Trump administration in the U.S. Meanwhile, U.S. consumer inflation data for October, released Wednesday, met market expectations but indicated persistent inflation. This inflation reading has reinforced expectations of a potential rate cut by the Federal Reserve in December, though the longer-term outlook remains uncertain as inflationary policies under Trump could influence future rate decisions.

Siemens impresses with results

Thursday brought a flurry of corporate updates across Europe, with several major companies reporting strong performance.

Siemens (ETR) saw its stock rise nearly 6% after the German engineering firm reported results that exceeded expectations and expressed confidence in managing global political and trade challenges.

Deutsche Telekom (ETR) gained 4% as the telecom giant posted a strong third-quarter performance, largely fueled by solid growth in Germany, and raised its financial guidance.

French reinsurance company Scor (EPA) rose over 7% following strong third-quarter results, while ASML (AS), Europe’s largest tech company, climbed 5% after projecting an 8% to 14% sales increase over the next five years, driven by surging demand in AI-related sectors.

Burberry (LON) surged 17% as new CEO Joshua Schulman presented his strategy to rejuvenate the luxury fashion brand, despite reporting a half-year operating loss.

Aviva (LON) also gained 4% after the British insurer announced a 15% increase in general insurance premiums over the first nine months and expressed confidence in meeting its group targets.

Crude bounces despite demand concerns

Oil prices inched up on Thursday morning, though gains remained modest due to ongoing concerns over global demand growth and rising production levels.

As of 06:40 ET, Brent crude rose by 0.1%, reaching $72.65 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 0.5%, trading at $68.78 per barrel.

Earlier in the week, the Organization of Petroleum Exporting Countries (OPEC) lowered its projections for global oil demand growth in 2024 and 2025, largely due to uncertainty over China’s demand. The International Energy Agency (IEA) is expected to follow with similar adjustments in its monthly report later today.

On the supply side, the U.S. Energy Information Administration (EIA) slightly revised up its 2023 U.S. oil production forecast and also raised its 2024 global oil output expectations. The EIA is set to release its weekly report on crude and product stockpiles later today, a day later than usual due to the Veterans’ Day holiday earlier this week in the United States.

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