FX.co ★ European Stocks Close Lower As Investors React To Earnings, Economic Data

European stocks ended the trading day lower on Thursday as investors processed various earnings reports and economic data from both Europe and the United States. Despite several companies reporting strong quarterly earnings, disappointing updates and revenue guidance from a number of high-profile European and American companies led to a cautious trading atmosphere throughout much of the day.

This sense of caution was further fueled by data indicating a surge in the U.S. personal consumption expenditures price index, sparking fears that the Federal Reserve might maintain higher interest rates for an extended time period.

The pan-European Stoxx 600 decreased by 0.64%, while the UK's FTSE 100 increased by 0.48%. In contrast, Germany's DAX and France's CAC 40 saw losses of 0.95% and 0.93% respectively, with Switzerland's SMI also shedding 0.97%. Other European markets, including Austria, Belgium, Denmark, Finland, Greece, Netherlands, Poland, Spain, and Sweden, registered varying degrees of losses. The markets in Norway, Portugal, and Russia closed weak while Turkey remained flat.

In the UK, Anglo American Plc shares surged by over 16% following a proposed takeover by mining giant BHP Group, aiming to create the world's largest copper miner. Barclays Group saw its shares climb by about 6.75% after the bank reported a smaller-than-expected drop in first-quarter profit. Meanwhile, Unilever shares rose by 5.7% as the company surpassed first-quarter sales forecasts and maintained its full-year guidance for underlying sales growth.

Strong performers in the German market included Deutsche Bank, which saw an increase of about 8.5%. Infineon and Commerzbank also recorded gains, while food delivery company Delivery Hero rose by 6.5% after announcing robust Q1 results and upgrading its FY24 revenue outlook.

In the French market, despite WorldLine experiencing losses of more than 6%, Sanofi made gains of more than 4% after reaffirming its 2024 adjusted earnings per share forecast.

Latest data from the U.S. Commerce Department revealed that the personal consumption expenditures price index escalated by 3.4% in Q1, following a 1.8% increase in Q4. Excluding food and energy prices, the PCE price index rose by 3.7% in Q1.

In Europe, surveys showed a projected increase in Germany's consumer confidence in May, whilst France's manufacturing confidence declined in April due primarily to the deteriorating order books. In the UK, retailers reported a significant drop in April sales, as indicated by results from the monthly Distributive Trades survey conducted by the Confederation of British Industry.