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2025-09-12 17:27:52
[Sudden Turn! European Stock Markets Shake Up, Double Impacted by Rate Cut Expectations and Credit Crisis!] ⑴ European stock markets experienced volatility on Friday, with the pan-European STOXX 600 index reversing course intraday, falling 0.2% to close at 554.8 points, primarily dragged down by a 0.6% drop in the healthcare sector. Novartis's share price fell 2.6% following a Goldman Sachs downgrade, highlighting the severe competition from generic drugs. The luxury goods sector also fell 1%, with LVMH and Richemont dropping 0.5% and 1.6%, respectively, reflecting brokerage concerns about the sector. ⑵ Despite short-term volatility, the STOXX 600 index is on track for its first weekly gain in three weeks, largely driven by expectations of an imminent Federal Reserve rate cut. Institutions noted that signs of a weakening US labor market are outweighing the impact of Trump's tariff rhetoric on inflation, and the market generally expects at least one rate cut in September. ⑶ Uncertainty over France's credit rating has added another layer of concern to the market. Fitch will announce the results of its review of France's rating later this week, following internal divisions within the French government over its fiscal spending plans. Despite this, the French stock market still rose by about 1.3% this week, outperforming the STOXX 600 index, demonstrating its discount to global markets and the resilience of multinational businesses. ⑷ Ocado's share price in the UK plummeted 10% after its US partner Kroger said it would review its investment in automated facilities, which undoubtedly cast a shadow on the future development of the automated logistics sector.
