Paris, France – European stock markets faced a slight decrease in their opening on Thursday, with France’s CAC 40 showing a minor increase of 0.14%, while Germany’s DAX and the U.K.’s FTSE 100 experienced decreases of 0.24% and 0.1% respectively. The Stoxx 600 index reflected these movements, showing a mix of losses and gains in various sectors.
China is reportedly considering imposing a substantial 1 billion yuan ($137.94 million) fine on accounting firm PricewaterhouseCoopers for its auditing work with troubled property developer China Evergrande. This potential fine could exceed the previous record fine given to Deloitte Touche Tohmatsu in 2023. Chinese authorities are expected to announce these penalties as early as this week.
Australian mining stocks took a hit after BHP announced its withdrawal from a £38.6 billion ($49 billion) takeover bid for rival Anglo American. Despite making multiple offers, BHP cited disagreements with Anglo American regarding South African regulatory risks and costs as the reasons for the failed deal. The impact of this decision was reflected in the share prices of BHP, Rio Tinto, and Fortescue Group, which all experienced declines.
In Japan, the Nikkei 225 index plummeted over 2% at the opening, driven by losses in healthcare, consumer cyclical, and industrial stocks. Notably, semiconductor equipment firm Advantest saw a significant 5.8% drop, while other major losers included Mitsubishi Electric, Tokyo Electric Power Company, and Terumo.
Salesforce Inc. faced a substantial decline in its stock price after reporting lower-than-expected revenue and earnings guidance for the second quarter. This rare miss for the tech giant sent shockwaves through Wall Street, with Salesforce’s post-market losses potentially leading to a 281-point drop in the Dow Jones Industrial Average. Additionally, activist investor Nelson Peltz sold his entire stake in Disney following a proxy battle defeat, further impacting the market sentiment.
The after-hours trading session saw significant movements in various stocks, with Salesforce, UiPath, and HP Inc. making headlines due to their performance. These fluctuations in the market underscore the impact of earnings reports and corporate announcements on stock prices, highlighting the volatility of the current financial landscape.