Tue, October 04, 2022

Pandora, Siemens Gamesa Drag Key Europe Index

Asian Europe Index: Finance concept with euro money sign.

The Europe index posted a slight drop on Tuesday, with Danish jeweler Pandora A/S leading the overall market decline. It cut its sales forecast while wind energy firm Siemens Gamesa Renewable Energy SA’s 2020 guidance turned murky.

The pan-European STOXX 600 was down by 0.03%, although confidence over the US-China trade deal kept the index’s losses in check.

The benchmark index was last trading with a 0.15% gain to €404.02.

Shares in the healthcare, utilities, and real estate sector were among the weakest in early trading. The stocks were last down by 0.01%, 0.46%, and 0.41% respectively.

Markets economist Hubert de Barochez stated that there is still optimism around the US-China trade this morning. As a result, they are seeing the rotation out of the defensive sectors.

However, investors still want to see something concrete from the discussions, even after the positive developments so far, he added.

Tariff-affected miners also gained 1.74% to €455.64 on news of China requesting US President Donald Trump to scrap more tariffs employed in September as part of a phase one agreement.

Pandora Sale Forecasts Send Europe Index Lower

European stocks traded on a positive note at the beginning of the month. The moves put the STOXX 600 on track to a record high hit in April 2015. The earnings season started strong, with hopes that the trade war might end soon.

More than half of European firms have already released results, with the large portion of the group surpassing analysts’ expectations.

Pandora, however, tumbled by 12% earlier on Tuesday. It appeared to be ready biggest one-day fall in over a year. Also, it warned of a sharper sales drop this year.

Pandora shares’ slip left the OMX Copenhagen 20 index down by 0.5% to kr1,076.04.

Siemens Gamesa also shed 10.3%, marking its lowest since January after revising down its 2020 guidance.

The tit-for-tat tariffs between the US and China, the UK’s departure from the European Union (EU), a global economic slowdown, as well as volatility in emerging markets, all contributed to the German-Spanish company’s dim outlook.

The stock of Siemens Gamesa declined by 9.11% to €11.687 on Tuesday.

Meanwhile, the chemicals area of the Europe index climbed 0.61% to €999.36. The move followed strong earnings reports from Koninklijke DSM NV and Evonik Industries AG.

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