Latest news with #JackAllen-Reynolds
Business Recorder
3 days ago
- Business
- Business Recorder
European shares settle lower as investors gauge mixed earnings
FRANKFURT: European shares closed lower on Friday, as investors assessed mixed corporate earnings while awaiting updates on a framework of an EU-US trade deal that officials said could be reached as early as this weekend. Investors navigated the peaks and troughs around a potential agreement between the two large economies after a busy week of trade discussions with the US culminated in deals with Japan, Indonesia, and the Philippines. The pan-European STOXX 600 index dropped 0.6% to session lows after US President Donald Trump said there was less chance of an agreement with the EU, but pared losses after EU diplomats reiterated that a deal of 15% duties on European goods was still in the works. The index last closed 0.2% lower with most regional bourses in red, but on a weekly basis, the STOXX index was on track for modest gains. 'It's hard to spin it as a good deal, but it would at least avoid much higher US tariffs and retaliation from the EU,' said Jack Allen-Reynolds, deputy chief euro zone economist at Capital Economics. 'The reported deal with the US would take a major downside risk off the table for now, weakening the case for further interest rate cuts.' Also weighing on stocks were elevated bond yields that got a lift after the European Central Bank's comments on Thursday tempered expectations of imminent interest rate cuts. Meanwhile, corporate earnings were in full swing. Puma was the biggest percentage loser on the benchmark index, falling 16%, its largest daily drop in more than four months. The sportswear brand cut its full-year outlook and reported weaker-than-expected quarterly results. London-listed sports retailer JD Sports slipped 0.7% after Puma's results. On the flip side, LVMH gained 3.9% after the French luxury group reported quarterly results, with analysts pointing to hopes on the horizon as the group said it saw signs of recovery in the Chinese market. The broader luxury index rose 1.8% and was the top sectoral performer. Automobile stocks gained 1.4%, boosted by Volkswagen's 4.6% rise after the CEO of Europe's biggest carmaker said cost cuts must be accelerated in response to tariffs. Earlier in the session, shares took a hit on the company's slashed full-year sales and profit margin forecasts.
Business Times
3 days ago
- Business
- Business Times
Europe: Shares settle lower as investors gauge mixed earnings, EU-US trade progress
[BENGALURU] European shares closed lower on Friday (Jul 25), as investors assessed mixed corporate earnings while awaiting updates on a framework of an EU-US trade deal that officials said could be reached as early as this weekend. Investors navigated the peaks and troughs around a potential agreement between the two large economies after a busy week of trade discussions with the US culminated in deals with Japan, Indonesia, and the Philippines. The pan-European Stoxx 600 index dropped 0.3 per cent to session lows after US President Donald Trump said there was less chance of an agreement with the EU, but pared losses after EU diplomats reiterated that a deal of 15 per cent duties on European goods was still in the works. The index last closed 0.2 per cent lower with most regional bourses in red, but on a weekly basis, the Stoxx index was on track for modest gains. 'It's hard to spin it as a good deal, but it would at least avoid much higher US tariffs and retaliation from the EU,' said Jack Allen-Reynolds, deputy chief euro zone economist at Capital Economics. 'The reported deal with the US would take a major downside risk off the table for now, weakening the case for further interest rate cuts.' Also weighing on stocks were elevated bond yields that got a lift after the European Central Bank's comments on Thursday tempered expectations of imminent interest rate cuts. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Meanwhile, corporate earnings were in full swing. Puma was the biggest percentage loser on the benchmark index, falling 16 per cent, its largest daily drop in more than four months. The sportswear brand cut its full-year outlook and reported weaker-than-expected quarterly results. London-listed sports retailer JD Sports slipped 0.7 per cent after Puma's results. On the flip side, LVMH gained 3.9 per cent after the French luxury group reported quarterly results, with analysts pointing to hopes on the horizon as the group said it saw signs of recovery in the Chinese market. The broader luxury index rose 1.8 per cent and was the top sectoral performer. Automobile stocks gained 1.4 per cent, boosted by Volkswagen's 4.6 per cent rise after the CEO of Europe's biggest carmaker said cost cuts must be accelerated in response to tariffs. Earlier in the session, shares took a hit on the company's slashed full-year sales and profit margin forecasts. Still, Traton, a truck unit of German automaker Volkswagen, fell 4.1 per cent. Carrefour gained 5.5 per cent after Europe's biggest food retailer reported its half-year results. Attention next week will turn to key events, including policy decisions from the Federal Reserve, earnings from several 'Magnificent Seven' companies, and Trump's Aug 1 tariff deadline. REUTERS
Business Recorder
4 days ago
- Business
- Business Recorder
European shares settle lower as investors gauge mixed earnings, EU-US trade progress
European shares closed lower on Friday, as investors assessed mixed corporate earnings while awaiting updates on a framework of an EU-U.S. trade deal that officials said could be reached as early as this weekend. Investors navigated the peaks and troughs around a potential agreement between the two large economies after a busy week of trade discussions with the U.S. culminated in deals with Japan, Indonesia, and the Philippines. The pan-European STOXX 600 index dropped 0.6% to session lows after U.S. President Donald Trump said there was less chance of an agreement with the EU, but pared losses after EU diplomats reiterated that a deal of 15% duties on European goods was still in the works. The index last closed 0.2% lower with most regional bourses in red, but on a weekly basis, the STOXX index was on track for modest gains. 'It's hard to spin it as a good deal, but it would at least avoid much higher U.S. tariffs and retaliation from the EU,' said Jack Allen-Reynolds, deputy chief euro zone economist at Capital Economics. 'The reported deal with the U.S. would take a major downside risk off the table for now, weakening the case for further interest rate cuts.' Also weighing on stocks were elevated bond yields that got a lift after the European Central Bank's comments on Thursday tempered expectations of imminent interest rate cuts. European shares close higher after ECB leaves rates unchanged Meanwhile, corporate earnings were in full swing. Puma was the biggest percentage loser on the benchmark index, falling 16%, its largest daily drop in more than four months. The sportswear brand cut its full-year outlook and reported weaker-than-expected quarterly results. London-listed sports retailer JD Sports slipped 0.7% after Puma's results. On the flip side, LVMH gained 3.9% after the French luxury group reported quarterly results, with analysts pointing to hopes on the horizon as the group said it saw signs of recovery in the Chinese market. The broader luxury index rose 1.8% and was the top sectoral performer. Automobile stocks gained 1.4%, boosted by Volkswagen's 4.6% rise after the CEO of Europe's biggest carmaker said cost cuts must be accelerated in response to tariffs. Earlier in the session, shares took a hit on the company's slashed full-year sales and profit margin forecasts. Still, Traton, a truck unit of German automaker Volkswagen, fell 4.1%. Carrefour gained 5.5% after Europe's biggest food retailer reported its half-year results. Attention next week will turn to key events, including policy decisions from the Federal Reserve, earnings from several 'Magnificent Seven' companies, and Trump's August 1 tariff deadline.
Qatar Tribune
24-06-2025
- Business
- Qatar Tribune
Eurozone business activity flatlines again in June, PMI shows
Agencies The eurozone economic activity flatlined for a second month in June, barely expanding as the bloc's dominant services industry showed only a minimal sign of improvement and manufacturing displayed none at all, a top survey showed on Monday. HCOB's preliminary composite eurozone Purchasing Managers' Index (PMI), compiled by S&P Global and seen as a good guide to growth, held steady this month at May's 50.2. That was barely above the 50 mark separating growth from contraction and below expectations in a Reuters poll for 50.5. 'June's flash PMI survey for the eurozone was consistent with the economy flat-lining,' said Jack Allen-Reynolds at Capital Economics. 'The weakness in activity was broad-based, with the services index edging up to just 50.0 while the manufacturing index edged down.' Business activity in Germany, Europe's largest economy, returned to growth as its recovering manufacturing sector saw its strongest increase in new orders in more than three years. But in France, activity contracted further as weakness in both manufacturing and services hit the eurozone's second-biggest economy, S&P Global said earlier on Monday. In the U.K., outside the currency union, business activity expanded modestly as new orders grew for the first time this year, but employers cut jobs more quickly and worried about the conflict in the Middle East. Overall demand in the bloc fell for a 13th month, albeit only mildly, with the new business index rising to 49.7 from 49.0. The services PMI nudged up to sit right on the break-even mark, up from May's final reading of 49.7, as the Reuters poll had predicted. But optimism among services firms increased and the business expectations index bounced to a four-month high of 57.9 from 56.2. The headline manufacturing index, which has been sub-50 since mid-2022, held steady at May's 49.4, defying expectations for a lift to 49.8. An index measuring output that feeds into the composite PMI fell to 51.0 from 51.5. Factories reduced their selling prices for a second month. The output prices index remained at 49.2. Eurozone inflation fell below the European Central Bank's (ECB) 2% target in May and the central bank signalled a pause in policy easing after cutting its deposit rate for an eighth time this month. One of the ECB's top policymakers, Bundesbank President Joachim Nagel, said last week that the bank will keep doing all that is necessary to complete its nearly accomplished mission on inflation.
Business Times
23-06-2025
- Business
- Business Times
Eurozone growth stalls in June with sluggish services, manufacturing
[LONDON] The eurozone economy flatlined for a second month in June, barely expanding as the bloc's dominant services industry showed only a small sign of improvement and manufacturing displayed none at all, a survey showed on Monday (Jun 23). HCOB's preliminary composite eurozone Purchasing Managers' Index, compiled by S&P Global and seen as a good guide to growth, held steady this month at May's 50.2. That was barely above the 50 mark separating growth from contraction and below expectations in a Reuters poll for 50.5. 'June's flash PMI survey for the eurozone was consistent with the economy flat-lining,' said Jack Allen-Reynolds at Capital Economics. 'The weakness in activity was broad-based, with the services index edging up to just 50.0 while the manufacturing index edged down.' Business activity in Germany, Europe's largest economy, returned to growth as its recovering manufacturing sector saw its strongest increase in new orders in more than three years. But in France activity contracted further as weakness in both manufacturing and services hit the eurozone's second-biggest economy, S&P Global said earlier on Monday. In Britain, outside the currency union, business activity expanded modestly as new orders grew for the first time this year but employers cut jobs more quickly and worried about the conflict in the Middle East. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Overall demand in the bloc fell for a 13th month, albeit only mildly, with the new business index rising to 49.7 from 49.0. The services PMI nudged up to sit right on the break-even mark, up from May's final reading of 49.7, as the Reuters poll had predicted. But optimism among services firms increased and the business expectations index bounced to a four-month high of 57.9 from 56.2. The headline manufacturing index, which has been sub-50 since mid-2022, held steady at May's 49.4, defying expectations for a lift to 49.8. An index measuring output that feeds into the composite PMI fell to 51 from 51.5. Factories reduced their selling prices for a second month. The output prices index remained at 49.2. Eurozone inflation fell below the European Central Bank's 2 per cent target in May and the central bank signalled a pause in policy easing after cutting its deposit rate for an eighth time this month. One of the ECB's top policymakers, Bundesbank president Joachim Nagel, said last week that the bank will keep doing all that is necessary to complete its nearly accomplished mission on inflation. REUTERS
