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Economic growth

European Equities Mixed as Investors Weigh Consumer Sentiment

Strategic Insights

— 2 min read

European equities are facing a mixed outlook as investors navigate improving consumer sentiment in the UK and easing consumer price inflation in Japan. The attention is now shifting to key economic indicators, including German economic growth data and French business confidence figures set to be released later in the week. The market is also closely watching US economic data, including the Federal Reserve Chair Jerome Powell's speech on the US economy.

Key Takeaways:

  • European equities are experiencing a mixed outlook, with CAC 40 called up 2.2 points and DAX 40 down 21.3 points.
  • UK consumer confidence improved in August, with the GfK consumer confidence index rising to minus 17 from minus 19 in July.
  • German economic growth data and French business confidence figures are expected to be released later in the week, with the market watching closely for any signs of economic growth.
  • Major UK retailers, including those in the British Retail Consortium, have warned Chancellor Rachel Reeves that raising taxes in the autumn budget could contradict her plans to improve UK living standards.
  • The UK government is set to take temporary ownership of the country's third-largest steelmaker, Speciality Steel, in a move to save jobs and ensure the nation's steel industry remains sustainable.
  • US-based financial software provider Intuit forecast double-digit sales and earnings growth in the financial year ahead, with sales beating expectations and revenue increasing to USD3.83 billion from USD3.18 billion.
  • Workday announced its acquisition of the artificial intelligence job candidate platform Paradox as it reported stronger second-quarter earnings.
  • Ross Stores said net earnings declined 3.6% to USD508.0 million in the three months to August 3, but second-quarter sales climbed 4.5% to USD5.53 billion.
  • Zoom Communications raised guidance after a "robust" performance in its second quarter, setting revenue growth of 12% to 13% year-over-year, and non-GAAP diluted EPS of USD15.49 to USD15.69.

Statistics:

  • CAC 40: up 2.2 points, 0.03%, at 7,940.49
  • DAX 40: down 21.3 points, 0.1%, at 24,272.04
  • UK consumer confidence index: +17 in August, up from -19 in July
  • German economic growth data and French business confidence figures: to be released later in the week
  • Intuit forecast: 12% to 13% year-over-year revenue growth and non-GAAP diluted EPS of USD15.49 to USD15.69
  • Ross Stores' quarterly dividend: raised by 10% to USD0.405 from USD0.3675
  • Zoom Communications' revenue growth: 12% to 13% year-over-year
  • Workday's acquisition of Paradox: to be completed in the third quarter ending October 31

Sources:

  • Alliance News
  • Statistics Bureau of Japan
  • GfK
  • British Retail Consortium
  • UK government
  • Intuit
  • Workday
  • Ross Stores
  • Zoom Communications

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