PARIS, April 15 (Reuters) – European stock exchanges ended Wednesday without much conviction, while Wall Street was in turmoil at midday, with investors trying to weigh between geopolitics and the numerous corporate results.
In Paris, the CAC 40 finished with a loss of 0.64% at 8,274.57 points, weighed down by the dominant luxury sector. The British Footsie fell by 0.47%, while the German DAX rose by 0.18%.
The EuroStoxx 50 index lost 0.74%, the FTSEurofirst 300 0.51%, and the Stoxx 600 0.43%.
At the close in Europe, the Dow Jones fell by 0.48%, but the Standard & Poor’s 500 advanced by 0.43% and the Nasdaq by 1.10%. The results of Bank of America (+1.75%) and Morgan Stanley (+4.35%) were praised, while the S&P 500 and Nasdaq erased all losses incurred since the beginning of the Iran war.
In Europe, stocks showed small variations for much of the session, with some indices briefly turning green before ending mostly in the red.
Caution eventually prevailed in the face of uncertainty, with U.S. President Donald Trump asserting that the conflict could end soon and the Strait of Hormuz could reopen shortly. However, the Iranian Revolutionary Guards declared they would block imports and exports in the Persian Gulf and the Sea of Oman if the U.S. maintained their blockade on Iranian ships. Meanwhile, Axios, citing two American officials, reported that Washington and Tehran were approaching a framework agreement to end the war.
“The market is cautiously optimistic in thinking that we can achieve peace with Iran,” summarized Art Hogan, chief strategist at B. Riley Wealth.
Showing some investor confidence, the volatility index on Wall Street was slightly lower at the close, around 18 points, in Europe, while the dollar, a reserve currency, depreciated and gold, a safe-haven asset, declined.
In addition to geopolitical developments, investors focused on the corporate results season, especially in the luxury sector, which disappointed in Europe, and in the American finance sector, which continues to thrive.
EUROPEAN STOCKS
Hermès dropped by 8.21% after reporting sales below forecasts for the first quarter, with the Iran war affecting spending in the Middle East and France.
Kering plunged by 9.28%, with Gucci sales showing a new year-on-year decline in the first quarter.
Stellantis gained nearly 2% due to a 12% increase in deliveries in the first quarter.
ASML fell by 4.25% following its revenue forecast for this year, while Aixtron jumped by 20.23% with its annual outlook.
ECONOMIC INDICATORS OF THE DAY
Manufacturing activity in the New York region unexpectedly increased in April, with the Empire State index rising by +11.0 after -0.2 in March.
Industrial production in the euro zone rose more than expected in February, by 0.4%, according to Eurostat data.
Harmonized inflation in France, according to European standards (IPCH), came in at 2.0% year-on-year in March, slightly higher than the initial estimate, according to definitive INSEE data.
EXCHANGE RATES
The dollar fell by 0.07% against a basket of international currencies, nearly returning to its pre-war level after gaining up to 3% in early March.
The euro was trading at 1.7799 dollar (+0.03%), nearly stable, while the pound sterling was trading at 1.3565 dollar (+0.01%).
OIL
The oil market was relatively stable on Wednesday. U.S. forces turned back ships leaving Iranian ports.
At the close of European exchanges, Brent crude rose by 0.76% to $95.52 a barrel, and West Texas Intermediate (WTI) crude by 0.92% to $92.11.
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(By Claude Chendjou, edited by Sophie Louet)
by Claude Chendjou
