BP's Q3 miss knock European oil company shares down

• Stock markets in Europe gain during Tuesday's session
• GDP data and CPI readings from the Eurozone point to the definitive end of the tightening cycle
• BP shares lift fuel sector stocks lower

Overall market situation:

Tuesday's session on European markets significantly improved investor sentiment. The distribution of forces in the market has changed slightly relative to recent sessions, with oil companies performing slightly worse on the broad market (in the wake of BP's results), and improving sentiment in the fashion sector.

Analyzing today's session, it is impossible not to mention macro data. In the morning, we learned, among other things, Germany's worse-than-expected retail sales readings for September (-0.8% vs. the expected +0.5% m/m. Previously -1.2% m/m). Data from the Eurozone also indicated weakness in the economy (q/q GDP reading of -0.1% vs. expected 0% and previous reading of 0.1%). The market is increasingly convinced that the interest rate hike cycle is over, which is slightly better for the listings of technology companies.

At the moment, most of the companies listed in Europe during Tuesday's trading session are trading up. Source: xStation 5

Futures based on the German DE30 are trading nearly 0.4% higher intraday and are currently testing resistance levels set by the 14900 point zone. Source: xStation 5

News:

Investors' attention on the Old Continent today is primarily focused on BP's (BP.UK) results. The oil company's shares are losing nearly 5% during today's session as the results failed to meet investors' expectations. 

Selected company results

- Adjusted EPS: $0.19 (expected $0.24)

- Net income: $3.29 billion (expected $4.05 billion)

- Dividend/share: $0.0273 (expected $0.0730)

- Announcement of further share buybacks worth $1.5 billion

- Cash flow from operations: $8.75 billion (previously $8.49 billion)

On the other hand, however, it can't be said that the company's performance was bad; on a k/k and y/y basis, results increased significantly. Source: BP

Other comments on the results:

• Company expects weak refining in Q4
• Dividend and share buyback policy unchanged (the company maintained its dividend at 7.27 cents per share and extended its $1.5 billion share buyback program over the next three months)
• The company took a $540 million write-down in connection with a wind power project near New York City
• Strong results were partially offset by a weak gas trading performance

Source: xStation 5

In Germany, BASF (BAS.DE) shares caught the eye. The chemical company announced a continuation of cost-cutting, a reduction in capital expenditures, and communicated that earnings in 2023 will reach the lower end of its forecast range due to an uncertain global outlook. 

Operating income in 2023 will be at the lower end of the previous target range of 4 billion euros ($4.24 billion) to $4.4 billion, compared to $6.9 billion in 2022, citing lower sales volumes in chemicals and plastics.

The company's shares are currently gaining nearly 5%. 

Source: xStation

Analyst recommendations:

* Adyen (ADYEN.NL): Jefferies cuts target price to EUR 720 from EUR 758

* Frontline (FRO.NO): JP Morgan raises target price for shares to NOK 237 from NOK 200.

* Air France KLM (AF.FR): Morgan Stanley cuts target price to EUR 14 from EUR 19.5.

* Moncler SpA (MONC.IT): Morgan Stanley cuts target price to EUR 58 from EUR 64