European markets open to close: earnings, yields, U.S. GDP

German power engineering company Siemens Energy rose 9% on Friday afternoon, paring recent losses after its stock price fell 35% in previous trading.

German Chancellor Olaf Scholz called the company “very important” after it was revealed on Thursday that the company had sought guarantees from the government, Reuters reported.

At the other end of the European index, shares in French pharmaceutical company Sanofi fell more than 17%. The company announced on Friday that it had lowered its 2025 profit outlook and said it was considering a possible separation scenario.

— Sam Meredith

Generali Investments’ Vincent Chaigneau talks about earnings season and the outlook for stock markets and investing.

Livermore Partners CIO David Neuhauser discusses risks to the U.S. economy and the threat to stocks from bond yields.

Shares in French drugmaker Sanofi fell more than 15% on Friday morning, shortly after the company announced it was lowering its 2025 profit target and considering a possible separation scenario.

The Paris-listed stock, which fell to the bottom of the pan-European Stoxx 600 index on the news, is now experiencing its worst day in 29 years, according to Reuters.

“The intended separation would create two entities, each better equipped to pursue its own business strategies, resources and capital allocation, and each with a strong focus on long-term growth in its respective markets,” Sanofi said. “We aim to enable our customers to focus on their business,” Sanofi said. Said In a statement.

Sanofi said the timing of the spin-off would not occur until the final quarter of 2024 at the earliest, adding that the listing would be aimed at “driving growth and shareholder value.”

— Sam Meredith

High-yield stocks are performing well despite rising interest rates, according to AllianceBernstein.

The asset manager said it was “premature” to judge that interest rates and bond yields had peaked, adding that it expected interest rates to remain “high and stable” in the near term. ‘s high stock yields “are performing well in a similar scenario,” he said. . ”

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— Amara Balakrishna

European markets are expected to open cautiously higher, according to IG data.

The FTSE 100 last opened 12.5 points higher at 7,369, with Germany’s DAX and France’s CAC 40 flat. Italy’s MIB rose 25 points to 27,476.

— Jenny Reid

The energy transition will require more and better batteries, Bernstein said.

“Enabling the energy transition will require batteries with higher energy density, faster charging times, and enhanced safety,” analysts said in an October report. ing.

The company said that while lithium-ion battery technology has been “essentially unchanged” for the past 30 years, and there are limits to how much the technology can improve, that is about to change.

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— Tan Weizhen

Stock prices have been sluggish throughout the fall, and the averages for all three major stocks are poised to record declines for the third straight month.

The S&P 500 index fell 3.52% in October. The Nasdaq Composite Index fell 4.72%, and the Dow Jones Industrial Average fell 2.16%.

If the month ends with a decline in the indexes, it would be the first time since March 2020 that the Dow and S&P 500 have fallen for three consecutive months.

The last time the Nasdaq fell for three consecutive months was in June 2022.

–Darla Mercado, Chris Hayes