Key facts
- European shares closed largely unchanged on Thursday, August 13.
- Investors awaited key euro zone employment and inflation data.
- Strong earnings season, particularly in energy and materials sectors, supported equities.
- Middle East conflict uncertainty and weaker commodity prices pressured sentiment.
- Brent crude futures fell 0.7%, impacting energy and basic resources sectors.
- Maersk and Adyen shares rose on positive company-specific news.
- Wall Street indexes opened mixed on Friday, following a record close for the S&P 500.
- Retail sales data and Middle East developments were key investor considerations.
European shares closed largely unchanged on Thursday, August 13, as investors awaited key economic data from the euro zone, including employment and inflation figures. The pan-European STOXX 600 index finished near flat at 659.24 points, retreating from record highs reached in the previous session.
Companies across the region are experiencing one of the strongest earnings seasons in years. Profits in the energy and materials sectors have been significantly boosted by elevated commodity prices, partly driven by the ongoing Middle East conflict. Joost Van Leenders, senior investment strategist at Van Lanschot Kempen Investment Management, noted a substantial improvement in the earnings picture compared to previous years, which is a strong driver for European equities.
However, investor sentiment remained subdued due to uncertainties surrounding the Middle East conflict, particularly concerning the strategic Strait of Hormuz, a vital waterway for global energy supplies. David Morrison, senior market analyst at Trade Nation, highlighted the difficulty in pricing the Middle East situation, as markets have repeatedly anticipated an imminent end to the conflict.
Weaker commodity prices also weighed on the market. Brent crude futures fell 0.7% on Thursday, pressured by expectations of weaker global demand and an increase in U.S. crude inventories. Consequently, the energy sector declined by 0.8%, and basic resources shares led sectoral losses with a 3% drop, their steepest fall in over a month, as precious metal and copper prices weakened.
Limiting the overall losses on the STOXX 600, the food and beverages sector gained 1.3%, and telecom shares rose 1%. Among individual stock movers, Maersk surged 9.4% after the Danish shipping group exceeded profit forecasts and raised its full-year earnings guidance for the second time this year, driven by higher freight rates. Adyen, the Dutch payments firm, jumped 16.4% after lifting its annual revenue growth forecast. Conversely, Swissquote tumbled 14%, hitting its lowest in over a year, after missing first-half expectations due to weak cryptocurrency income.
On Friday, Wall Street's main indexes opened mixed. The Dow Jones Industrial Average rose 0.01%, the S&P 500 gained 0.10%, and the Nasdaq Composite increased by 0.18%. Investors were assessing U.S. retail sales data and the latest developments in the Middle East.