Athens index loses 2.11% in Oct. 22 session as 81 stocks fall

Key Facts

The Athens Stock Exchange general index fell 2.11% at the close of the Oct. 22 session, according to Investing.com data, as declining stocks outnumbered advancers 81 to 34. The previous session’s performance provides a documented reading of moves in the Greek market before Oct. 23, while the closing percentage attributed to that day in the initial draft could not be verified. In the euro zone, the preliminary composite Purchasing Managers’ Index fell to 51.9 in October from 53.1 in September. The reading was below the market forecast of 52.7, according to FXStreet. It was released during the Oct. 23 session, but does not establish that economic activity data caused the move in Greek stocks.

Survey details showed the services Purchasing Managers’ Index fell to 51.7 in the preliminary October reading from 53.0 in September, against forecasts of 52.6, according to a Reuters report carried by MarketScreener. The manufacturing index also declined to 52.4 from 52.9, while economists had expected 52.7. The report said private-sector growth in the euro zone slowed to its weakest pace in four months. It attributed the slowdown to higher energy-related costs and a renewed contraction in activity in France amid political and financial pressures. S&P Global Chief Business Economist said, "The intensification of inflationary pressures during the month was a key factor behind the slowdown."

Cost pressures extended to companies’ inputs, with costs accelerating for a second consecutive month; part of the increase was linked to energy, fuel and transport, according to Chris Williamson, chief business economist at S&P Global. Williamson said higher input costs could prompt companies to raise selling prices to protect their margins. But the pace of selling-price increases was slower than in September, which the report described as a pressure on margins. At the same time, business confidence in the euro zone fell to a five-month low. The decline in optimism was steeper in manufacturing, according to the survey results cited in the report.

Demand indicators pointed to continued expansion, but at a weaker pace: growth in new orders slowed to its weakest rate during the four-month expansion period through October. By contrast, export orders rose for a third consecutive month, following monthly declines that had lasted nearly four and a half years. In the labor market, euro zone hiring came close to stalling in October. Services job creation slowed to its weakest pace in five months, while manufacturing employment fell after improving for two months. These figures place activity and employment in the context of the session report, without establishing their effect on the Athens Stock Exchange.

Attention now turns to the European Central Bank’s monetary policy meeting in Frankfurt on Oct. 28 and 29. The Governing Council is scheduled to meet on its first day, Oct. 28, and continue its work on Oct. 29. The ECB will hold a news conference after the second day’s meeting. In Greece, the Hellenic Statistical Authority’s calendar for Oct. 30 lists the publication of the retail trade turnover index for August. The date also includes the monthly labor force survey for September.