European Stocks Lower; Volkswagen Slumps After Third-Quarter Earnings By

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By Peter Nurse European stock markets fell Friday due to a weak result from Amazon (NASDAQ:) as well as a significant drop in quarterly growth for France.

At 03:45 ET (07.45 GMT), the in Germany was trading 1% lower while the in France fell 0.7%. The U.K. traded 1% higher.

Data released Friday showed that the French third quarter saw a 0.2% increase, which is 1.0% more than the annual average. This is a sharp decline from the 0.5% and 4.2% growth in the previous quarter.

The GDP of the country also fell 0.2% in the quarter. This is a decrease from the 1.5% growth that was recorded the previous quarter.

The tone was set earlier when Amazon, widely considered a bellwether of the global ecommerce industry, predicted late Thursday that there would be a slowdown with holiday sales growth. This was despite the fact that businesses and consumers are more concerned about inflation.

The company stated that Europe would be its most affected region this holiday season. Germany was its largest market after the United States.

The Fed raised interest rates by 75 basis point on Thursday. It said it expects them to go up “further”. This is despite the fact that regional growth has slowed dramatically.

In the corporate sector Volkswagen AG (ETR:) stock fell 4% after the German auto giant’s third-quarter were weighed down by 1.6 billion in one-off effects from suspending activities in Russia and listing Porsche AG.

NatWest (LON) stock fell more than 7% after the U.K bank missed profit estimates in the third quarter. The U.K bank had booked a sharp increase in provisions to protect against loan losses.

Sanofi (NASDAQ:) Stock rose 1.2% following the French drugmaker’s forecast of faster earnings growth in 2015 due to strong demand for its bestselling drug Dupixent as well as its flu vaccines.

Porsche (ETR,:) stock fell 2.5% despite Porsche reporting a 40% increase in operating profit at more than 5 billion euros ($4.99 Billion) in its first results after its stock market listing in September.

Oil prices fell Friday, weighed by China, the world’s largest crude importer, imposing fresh Covid lockdowns in a number of cities as infections start to rise again, maintaining the country’s Covid Zero policy.

China reported 1,506 new COVID-19 infection cases on Oct. 27, according to the National Health Commission. This is an increase of 1,264 new cases that were reported a day earlier.

Despite these losses however, the market is headed for a weekly increase, supported by supply tightness and robust U.S. trades. After four monthly declines, the Crude is on track to gain in October.

Futures traded 1.6% lower at $87.66/barrel by 03:45 ET. The contract fell 1.3%, to $93.81.

The price of gold dropped 0.6% to $1655.85/oz, while the price of silver was 0.1% lower at $0.9949

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