Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Europe close: Carmakers drive markets lower as earnings disappoint
(Sharecast News) - European stock markets finished with heavy losses on Tuesday, with the exception of the UK's FTSE 100, with positive eurozone GDP data failing to lift the mood following some disappointing corporate results from some the region's heavy hitters. The Stoxx Europe 600 index closed down 0.7% at 505, with a flat finish in London outweighed by heavy losses in Frankfurt and Paris (both down 1%), Milan (-1.6%) and Madrid (-2.2%). Losses were extended in afternoon trade after a poor start on Wall Street.
There were further signs that the eurozone was starting to turn a corner as inflation held steady at 2.4% in April, while data showed that the single currency economy avoided recession in the first quarter of the year.
GDP across the eurozone expanded by 0.3% in January-March, according to Eurostat, ending the technical recession of last year when the economy shrank by 0.1% in both the third and fourth quarters of last year. Stronger-than-expected growth in Germany, France, Italy and Spain was the main driver, assisted by lower energy prices.
However, core inflation - which strips out volatile items such as food and energy - fell to 2.7% in April, down from 2.9%, but ahead of forecasts of a larger fall to 2.6%.
"All-in-all, the numbers are moving in the right direction, and close enough to the ECB's 2% target to keep the expectation of a 25 basis point cut in June on track," said David Morrison, senior market analyst at Trade Nation.
Carmakers disappoint
Volkswagen's share price reversed 5% after the German automaker reported a slow start to the year, though the company expressed its confidence in hitting full-year targets. Sales revenues were down 1% year-on-year in the first quarter at €75.5bn, with unit sales dropping 2% to 2.1m. The company said the performance was "muted as expected", blaming an unfavourable country, brand and model mix.
Sector peer Mercedes-Benz also fell 5% after posting a 30% annual fall in first-quarter EBITDA as it was weighed down by model changes and soft demand for electric vehicles.
Renault, Peugeot, Porsche and BMW also all finished with heavy losses.
Spanish banking group Banco Santander also finished down 2% despite saying that revenues rose a better-than-expected 10% in the first quarter, boosted by higher interest rates.
Swiss dental implants maker Straumann slumped 11% despite reporting 15.1% organic sales growth for the first quarter, driven by high demand for its premium implants across its markets.
UK investment platform Hargreaves Lansdown jumped 4% after reporting good momentum in April as clients invested at the start of the tax year to claim more benefits.
Danish brewing giant Carlsberg fell despite announcing a DKK1.0bn (£110m) share buyback after a solid start to 2024 with strong growth in Asia, specifically in China and Vietnam.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.