Autos and parts to remain under pressure
STOXX 600 down 0.3%
L'Oreal, Akzo Nobel fall after earnings
Wall St futures lower
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
AUTOS AND PARTS TO REMAIN UNDER PRESSURE
Europe's autos and parts sector .SXAP, although the top gainer in Europe on Wednesday, has had a terrible few months, as waning demand and lower priced competition from China have weighed on earnings.
Profit warnings in the sector have been common, the most recent being a cautious update from Volvo Car VOLCARb.ST today, whose shares are down 3%.
ING strategists think industry data is likely to continue to disappoint.
"We envisage a deceleration in car sales during the second half of the year as consumer demand continues to be more muted following the buoyant post-COVID phase," ING says.
"The mixed economic environment with elevated, although declining, interest rates and political and policy uncertainties in multiple prominent geographies aren't helping either."
Looking ahead to this reporting season, ING expects European OEMs (original equipment manufacturers) to have a soft tone.
"They might use this occasion to reduce and calibrate their targets further for the full year," ING says.
"We feel that the current year is a transition one, where the electrification surge experiences a sharp slowdown before resuming growth at a more modest pace."
But, while the sector is struggling at the moment, rate cuts could bring some relief in 2025.
"For now, we expect a stabilisation in the global auto market volume next year, with some positive aspects more likely than a sharp negative downturn," the Dutch bank says.
"The expected lower interest rate backdrop in the United States and Europe should provide a tailwind for consumer sentiment."
Companies in the auto parts sector include Valeo VLOF.PA, Continental CONG.DE, D'Ieteren IETB.BR and Forvia FRVIA.PA.
(Samuel Indyk)
*****
WEDNESDAY'S OTHER LIVE MARKETS POSTS:
EUROPEAN STOCKS HAVE HIGH TRUMP PREMIUM PRICED IN - BARCLAYS CLICK HERE
EUROPE STRUGGLES FOR DIRECTION, EARNINGS MIXED CLICK HERE
EUROPE BEFORE THE BELL: FUTURES DIP AFTER RAFT OF EARNINGS CLICK HERE
ELECTION AND FED JITTERS GRIP MARKETS CLICK HERE
Harris vs. Trump: Reuters/Ipsos US presidential poll tracker https://reut.rs/4814CgV
European shares mixed https://reut.rs/3C4Dv8G
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
