European stock markets faced a downturn in Wednesday trading, with the Stoxx Europe 600 declining by 0.31%. Germany's DAX slipped 0.20%, while France's CAC recorded a fall of 0.50%. The FTSE in London was down by 0.58%, and the Swiss Market Index also closed 0.13% lower on the day. In a notable economic indicator, the European Commission's Directorate-General Economic and Financial Affairs has released a flash estimate revealing that the consumer confidence indicator increased by 0.5 percentage points in the EU and by 0.4 percentage points in the euro area.
This marks a significant milestone as consumer confidence has reached its long-term average for the first time since February 2022. Turning to corporate news, Deutsche Bank has announced a rise in Q3 earnings and revenue that surpassed analyst expectations. The bank is also facing a court order from a German court to make increased payments to a group of former Postbank shareholders due to its acquisition of the company, as detailed by a statement from the Cologne Higher Regional Court on Wednesday.
Following this news, shares of Deutsche Bank closed down by 1.3% in Frankfurt. In a different sector, HSBC Chief Executive Georges Elhedery alerted senior staff about potential job cuts, as reported by Reuters on Wednesday citing an internal memo. The bank has not yet responded to requests for comments from MT Newswires.
As a result, shares closed marginally lower on the FTSE. In automotive news, Stellantis confirmed that it will introduce a demonstration fleet of all-new Dodge Charger Daytona vehicles by 2026, which will feature Factorial's advanced solid-state batteries. Shares of the European automaker saw an increase of 2.9% and closed higher in Paris. In a move within the energy sector, British oil and gas company Shell’s North America unit announced on Wednesday that it has finalized an agreement to purchase a 100% equity stake in Risec Holdings.
This company owns a 609-megawatt two-unit combined-cycle gas turbine power plant situated in Rhode Island, although the financial specifics of the deal remain undisclosed. Consequently, Shell shares experienced a drop, falling by 1% in London..