(Bloomberg) -- European stocks fell on Tuesday but remained in striking distance of their peak record levels as ASML posted third-quarter bookings that missed estimates and falling oil prices dragged energy stocks down.
The Stoxx Europe 600 Index was down 0.7% to 521.32 at 16:47 in Paris, still short of its September 27 record of 528.08 points. ASML tumbled 15%, pulling technology stocks lower, after releasing earnings early. Energy stocks were also among leading decliners after concerns eased about Israel attacking Iranian energy facilities. The sector’s index fell as much as 3.5%.
Among individual stocks, Ericsson AB rose 11% after its earnings beat analysts’ estimates in the third quarter, as the Swedish telecom equipment maker’s deal with US carrier AT&T Inc. began to pay off.
Investors expect near-term upside for European equities, according to Bank of America Corp.’s European fund manager survey, with 27% of respondents seeing gains for the region’s cyclicals relative to defensives, the highest since June.
“It seems a bit complacent to us with the geopolitical risk,” said Yann Azuelos, senior portfolio manager at Mirabaud in Paris.
Some of Europe’s largest companies are set to report this week, starting after the close on Tuesday with French luxury behemoth LVMH.
While data so far point to a gentle cooling in the euro-area economy, rather than a rapid downturn, concerns are mounting about French finances and Germany’s lackluster economy. According to a Bloomberg survey, Germany is suffering from a mild recession and output across the whole of 2024 will be flat — underscoring the malaise in Europe’s largest economy.
The downturn is likely to see the European Central Bank cutting interest rates later this week, according to economists surveyed by Bloomberg.
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- The Pay Growth Risk: The London Rush
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