European stock markets experienced a downturn on Wednesday. The FTSE in London decreased by 0.07%, Germany's DAX retreated 1.14%, France's CAC slipped 0.51%, and the Stoxx Europe 600 dropped 0.59%. Additionally, the Swiss Market Index declined by 0.16%. Recent data from the euro area revealed a 0.6% month-over-month decline and a 3.4% year-over-year drop in industrial producer prices for September, as reported by Eurostat.
In the private sector, business activity within the euro area stagnated in October, with significant contractions noted in the two largest economies - Germany and France - offsetting growth in other regions. S&P Global and Hamburg Commercial Bank indicated an improvement in the final HCOB Eurozone Composite PMI Output Index, which rose to 50 in October from 49.6 in September, indicating stability in private sector output levels.
The services sector saw a slight increase in its PMI, moving up to 51.6 from 51.4. Turning to corporate updates, Danish pharmaceutical company Novo Nordisk reported an increase in both its earnings and net sales for Q3. On the DAX, Siemens Healthineers led the gainers after announcing a year-over-year increase in net income and revenue for fiscal 2024.
Conversely, major auto manufacturers like Mercedes Benz, BMW, Volkswagen, and Porsche were among the largest decliners on the German exchange. BMW Group reported a significant drop in its Q3 profit attributable to shareholders, sinking to 389 million euros ($417.5 million) from 2.68 billion euros, while its revenue decreased to 32.41 billion euros from 38.46 billion euros a year earlier.
In France, Credit Agricole was notable among the decliners on the CAC after revealing a year-over-year decline in its Q3 net income and revenue. Over on the FTSE, Persimmon reported a decline as well, logging 1,416 new home completions in Q3, down from 1,439 homes a year earlier..