European Stocks Drift Lower Amid Economic Data and War Tensions

European stocks slipped as Ukraine war developments weigh. U.K. unemployment held at 4.4%, while France sees inflation rise to 1.7%. Defense stocks surge, and Capgemini faces challenges with sales decline.

Date: 18-02-2025

AI Rating: 5

Market Overview: European stocks experienced a downward trend on Tuesday after an initially firm opening, influenced by ongoing developments related to the Ukraine war and economic data releases.

U.K. Unemployment Rate: The unemployment rate in the U.K. remained unchanged at 4.4% in the fourth quarter. This stability suggests that the job market is holding steady, which could have a neutral impact on investor sentiment.

Inflation in France: France’s consumer price inflation increased to 1.7% in January from 1.3% in December. This upward trend indicates higher costs, particularly in energy and services, which could mildly affect consumer spending and overall economic growth.

Defense Stocks Performance: Notably, defense stocks continued to extend gains from the previous session due to anticipated increases in military spending. Companies like Saab, Leonardo, and Thyssenkrupp saw significant gains of nearly 3%, 1.5%, and 4.7%, respectively, supporting positive sentiment in this sector.

Capgemini's Sales Decline: Capgemini experienced a sharp decline of nearly 8% in stock value after reporting a 2% drop in annual constant currency sales. This negative announcement could lead to diminished investor confidence and trigger further losses in the company’s stock price.

Positive Reports from Valneva SE and Antofagasta: Valneva SE's stock surged 5.8% following the release of in-line 2024 revenue forecasts, offering potential for growth in market valuation. Antofagasta’s stock rose 2.2% backed by its FY25 outlook and 5% revenue growth, supported by a widened EBITDA margin at 52%. These positive performances could lead to favorable investor perceptions in their respective sectors.

Other Notable Movements: CTS Eventim saw its stock increase by 2.4% with a reported 19% revenue growth in 2024. Meanwhile, IHG's stock fell by 2.2% following an acquisition announcement, which may suggest concerns about capital allocation and growth strategy.

Stocks: SAAB LDO TKAMY CMPNY VLVLY ANTO CCTZF IHG