European stock markets lower; autos fall as investors digest earnings

Speaking on the outlook for the banking sector, Sue Trinh, co-head of global macro strategy at Manulife Investment Management, said there are few indicators of a widespread banking crisis.

European stocks fell Thursday morning, with the Stoxx 600 index down 0.3%, with most sectors recording losses.

Auto stocks were down 2.4% and mining stocks were down 1.07%, while banking stocks were on the bright side, up 0.75%.

Germany’s DAX was down 0.54%, France’s CAC 40 was down 0.26% and the UK’s FTSE 100 was down 0.12%.

German producer price It fell 2.6% on a monthly basis and annualized inflation fell from 15.8% to 7.5%.

It was the sixth straight month of decline.

Prices remain higher year-on-year, mainly due to energy, according to the National Bureau of Statistics.

— Jenny Reed

Investment bank UBS has identified global stocks that could have a year of ‘slow inflation’.

A strategist at Swiss Bank said he expects the global economy to grow weaker at 2.6% in 2023, compared with the average of 3.5% over the past 50 years. They also said the central bank’s achievement of core inflation towards its target has been slower than expected.

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— Ganesh Rao

Earnings season got off to a strong start, with 10% of the broader indices reporting better-than-expected returns. So far, 83% of the 53 companies included in the S&P 500 report beat Wall Street’s expectations by 6 percentage points. Both of these rates are above average.

The broader index has been on a moderate uptrend over the past few weeks, up 7% after bottoming out at the height of the banking crisis in mid-March.

— Pia Singh

Technology has been a bright spot in this year’s volatile market.

Louis Navellier, chairman of Navellier & Associates, told CNBC’s Street Signs Asia, “Apple and Microsoft are definitely the leaders this year. They are now the most heavily weighted in the S&P 500.”

But he argued that the S&P 500’s “true leader” is another stock. He also selected three other stocks that he expected to see high earnings growth.

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— Tan Weizhen

Morgan Stanley posted earnings per share of $1.70 in the first quarter, beating analyst estimates of $1.62 in a Refinitiv survey. Overall revenue was $14.52 billion, beating Refinitiv’s consensus forecast of $13.92 billion.

One of our growth areas is wealth management, where revenues are up 11% from a year ago.

The stock, which has outperformed most other banks this year, fell 2% before the start of trading despite the strong results.

“Investments in our wealth management business continue to pay off, with net assets of $110 billion for the quarter,” said James Gorman, chairman and CEO, in an earnings call. Equity and bond earnings were strong, although subdued.”

-John Melloy

European markets are heading flat from Thursday’s opening.

The UK’s FTSE 100 Index is set to open 1 point lower at 7,893, Germany’s DAX is 9 points lower at 15,885, France’s CAC is 2 points higher at 7,553 and Italy’s FTSE MIB is set to open 14 points higher at 27,406, according to IG data. is.

Proceeds will come from WHSmith, Rio Tinto, Dunelm, Renault, Publicis and Ferragamo. The data released includes preliminary Eurozone consumer confidence figures for April.

— Holly Eliyat