European markets extended weekly gains, and investors looked beyond rate uncertainty. Germany's wholesale prices declined for the tenth month in a row. UK retail sales rebounded in January amid a broad improvement in all categories except apparel.
The UK economy contracted for the second quarter in a row in the fourth quarter amid broad weakness in activities. Positive earnings from Renault, Schneider Electric, Stellantis, Commerzbank, Orange and Safran supported the advance in European indexes.
European markets edged slightly higher, and bond yields held firm in the Euro Area and the UK. The euro and the pound weakened and hovered near three-month lows. The Dutch GDP returned to growth in the fourth quarter of 2023, and UK inflation held steady in January.
European markets held steady. In the fourth quarter of 2023, the jobless rate in France matched the rate in the previous quarter, but in the UK, it eased from the previous quarter. Swiss inflation eased in January.
European markets edged higher, bond yields edged lower but traded near 2-month lows, and the euro and the pound retained a downward bias against the dollar.
European stock markets lacked direction, bond yields decreased, and the euro and the pound edged lower after investors looked beyond interest rate uncertainty.
Eurozone retail sales declined for the fifteenth month in a row after elevated borrowing costs and high inflation weighed on demand. German factory orders advanced in December on the rise in demand for aircraft parts and electrical machinery.
European market indexes struggled near recent highs, and investors reviewed the latest updates on service sectors in Spain and Italy. Germany's merchandise imports fell at a faster pace than its imports, resulting in a surge in trade surplus in December.
European markets traded higher and trimmed weekly losses after investors reviewed the central banks' rate actions. France's industrial output rebounded to a 7-month high. Spain reported the lowest unemployment in January on record.
Eurozone inflation in January slowed after food and energy price inflation continued to ease. The jobless rate in the Euro held steady in December, and Germany and Spain reported the lowest and highest rates in the currency union, respectively.
France's inflation eased after food, energy, and manufactured product price increases softened. Italy's jobless rate dropped to a 16-year low. Swiss retail sales declined for the sixth month in a row in December.
The Eurozone economy avoided a technical recession, and growth stalled in the final quarter of 2023. The GDP growth rates in Germany and France, two leading economies in the region, slowed for the third year in a row as rising consumer prices and record interest rates weighed.
Market indices in Europe were near two-year highs as investors turned their attention to the most recent earnings reports. The Bank of England and the U.S. Federal Reserve are widely expected to hold rates matching the rate action by the ECB in the previous week.
