European stock markets were in the red on Thursday, with the STOXX 50 falling by 0.8% and the STOXX 600 declining by 0.7%. Despite efforts to bounce back from a recent sell-off, investors remained cautious about the economic and monetary outlook. Major German companies reported their earnings, influencing market movements.
Siemens’ shares dropped by 1.7% despite reporting better-than-expected profit growth, due to a decline in orders. Conversely, Deutsche Telekom’s shares rose by 1.3% following an increase in earnings and an optimistic free cash flow guidance. Allianz also saw a 1% increase after exceeding forecasts and announcing an expansion of its share buyback program. Munich RE’s shares gained 0.2% as the company hinted it might surpass its guidance. Rheinmetall remained steady, sticking to its full-year guidance with a slight increase of 0.1%.
Since the beginning of 2024, the Euro Area’s main stock market index (EU50) has increased by 93 points or 2.05%, based on trading data. Historically, the EU50 reached an all-time high of 5522.42 points in March 2000. According to Trading Economics’ global macro models and analysts’ expectations, the EU50 is predicted to reach 4460.17 points by the end of this quarter and 4291.20 points in the next 12 months.
Despite some positive earnings reports, the overall market sentiment remained cautious, reflecting ongoing concerns about the broader economic environment.
