European markets traded in a tight range near record highs as investors awaited monetary policy decisions from the Bank of England and the U.S. Federal Reserve. Hourly labor cost growth in the Euro Area slowed in the fourth quarter of 2023 to the lowest pace since six quarters ago.
European markets advanced ahead of rate decisions from the central banks of the U.S., UK, and Japan this week. Euro Area inflation eased in February after energy prices continued to decline.
Benchmark indexes in France and Germany traded at new record highs, and crude oil prices jumped to a 4-month high. Spain's inflation dropped to a six-month low, reflecting lower energy prices and slower food price inflation.
Industrial production in the eurozone plunged in January, largely because of a sharp decline in capital goods orders. Germany's wholesale prices eased in January, confirming the yearlong inflation cooling trend.
UK wage growth in the three months to January eased, the jobless rate expanded, and applicants for jobless benefits advanced. Germany confirmed the preliminary estimate of inflation in February after food prices rose at a slower pace.
European benchmark indexes traded down from record highs as investors booked profits. The eurozone bond yield drifted lower amid rising expectations of a rate cut as early as June. Spain's retail trade activity expanded for the fourteenth month in a row in January.
German factory orders plummeted in January, largely because of the base effect in the previous month. The UK home price rose at a slower pace in February, indicating a stable start in 2024.
Eurozone retail sales barely advanced in January as consumers avoided discretionary spending amid high prices and elevated interest rates. Germany's trade surplus rose to a January record high after exports rose and imports fell.
European markets were on the defensive as investors awaited monetary policy decisions from the European Central Bank and the UK's general budget later in the week.
European markets hovered near record highs as investors awaited an interest rate decision from the European Central Bank later in the week. The Swiss inflation rate eased in February, largely because of slower food price inflation.
The benchmark index in Germany extended weekly gains, but indexes in France and the U.K. struggled. Inflation in the eurozone edged lower but stayed above the target level set by the central bank, and German retail sales declined after consumers battled high prices and elevated interest rates.
European government bond yields rose after inflation eased in Spain and France. Germany's jobless rate rose to a 3-year high in January, and payrolls were stable in France in the fourth quarter. The Swiss GDP expanded in the fourth quarter and full year of 2023.
European stock market indexes traded in a tight range, and the business confidence indicator unexpectedly declined in February. Moreover, the manufacturing confidence index in Italy decreased, and Sweden's producer price index eased.
