Market Update
European Passenger Car Sales Flat In 2024, UK Jobless Rate Jumps to Multi-Month High
Bridgette Randall
21 Jan, 2025
London
European markets struggled to stay above the flatline in Tuesday's trading, and bond yields edged lower, tracking the yields on the U.S. Treasury notes.
Benchmark indexes in Paris, Frankfurt, and London lacked direction as investors reviewed the latest jobless report in the UK, construction update, and passenger car sales in the EU.
Market sentiment in the eurozone has been weak amid a list of worries hobbling enthusiasm as investors reviewed the latest batch of corporate results.
The incoming U.S. presidential administration has delayed placing trade tariffs on manufactured goods from the EU, Canada, China, and Asia to February, but the looming uncertainty continues to weigh on the market.
Eurozone Construction Decline Halted after 10-Month Slide
In the euro area, construction output in November 2024 rose by 1.4% from a year ago and by 0.9% in the European Union, boosted by construction of buildings.
Compared to October 2024, construction in the currency bloc expanded by 1.3%, according to data released by Eurostat on Monday.
Construction activity was higher in Italy and Spain, but slower in France and Germany.
On an annual basis, the highest increases in construction were recorded in Spain, Bulgaria, and Belgium, while the largest decreases were observed in Romania, Poland, and Slovenia.
EU Car Sales Barely Advanced in 2024
The passenger car market in the European Union expanded by 5.1% in December 2024, the European Automobile Manufacturers' Association reported on Tuesday.
Vehicle sales rebounded from a 1.9% decline in November, following the strength in Spain and France, two of the largest markets in the region.
Sales rose sharply in Spain by 28.8%, in France by a modest 1.5%, but fell in Germany by 7.1% and in Italy by 4.9%.
Battery electric car sales in December fell by 10.2% to 144,367 units and held its market share steady around 15.9%, due to significant decreases in sales in Germany by 38.6% and France by 20.7%.
Petrol car sales dropped by 1.8% to 269,260 units, and the diesel car market declined by 15%.
Plug-in hybrid car sales rose by 4.9%.
Hybrid-electric car sales increased 33.1% in December, with market share expanding to 33.6% from 26.5% a year ago, exceeding petrol car registrations for the fourth consecutive month.
For the full year 2024, overall car sales rose annually by 0.8% to 10.6 million units, and the battery-powered vehicle market share was 13.6%.
UK Unemployment Rate Highest Since May 2024
The UK unemployment rate in the three months to November was estimated at 4.4%, the highest level since May 2024, and above the 4.3% recorded for the three-month perido to October, the Office for National Statistics showed on Tuesday.
Wage growth in the third quarter remained high, but falling vacancies signal a decrease in pay pressures.
Average earnings excluding bonuses climbed 5.6% in the three months to November from a year ago, slightly faster than the forecast of 5.5%.
Earnings, including bonuses, also rose 5.6% annually, which was in line with expectations set by some economists.
Europe Indexes and Yields
The DAX index edged lower by 0.02% to 20,958.25; the CAC-40 index rose 0.04% to 7,736.64; and the FTSE 100 index edged higher by 0.1% to 8,529.39.
The yield on 10-year German bonds decreased to 2.49%, French bonds eased to 3.29%, the UK gilts declined to 4.66%, and Italian bonds edged lower to 3.61%.
The euro was higher at $1.03; the British pound inched higher to $1.22; and the U.S. dollar was lower at 91.06 Swiss cents.
Brent crude decreased $0.33 to $79.43 a barrel, and the Dutch TTF natural gas fell by €0.90 to €46.23 per MWh.
Europe Stock Movers
Banks led gainers in trading on European exchanges after bond yields edged lower and the euro and the pound stabilized near two-year lows.
Barclays gained 0.8% to 294.15 pence, HSBC advanced 0.1% to 826.30 pence, UniCredit decreased 0.5% to €42.87, BNP Paribas declined 0.2% to €62.83, and Societe Generale fell 0.6% to €62.83.
Essentra PLC declined 0.7% after the engineering company reported trading and share buyback updates.
The company estimated flat sales and reiterated its previous operating earnings outlook.
Premier Foods jumped nearly 3% to 184.33 pence after the food products maker estimated annual profit near the top end of the range estimated by analysts.
Japan Indexes Struggled to Rise In Cautious Trading Amid Worries Related to Trade, Economy, and Rate Path
Akira Ito
21 Jan, 2025
Tokyo
Benchmark indexes in Tokyo lost early momentum after domestic economic growth and corporate earnings worries dominated market sentiment.
The Nikkei 225 declined 0.3%, and the TOPIX edged down a fraction after an early rally in the market failed to broaden beyond tech stocks.
Export-sensitive stocks led gainers after the newly appointed U.S. presidential administration delayed the promised implementation of additional and tougher tariffs to February.
Despite the delay, Japanese corporations are bracing for a sharp escalation in U.S. trade barriers, and large automotive and electronics companies are ramping up supply chain diversification away from China to Vietnam, Mexico, India, and the ASEAN region.
Moreover, market sentiment was muted ahead of the Bank of Japan's rate decision at the end of the policy meeting next week, and last week policy officials signaled the possibility of the increase in the reference rate to 0.5%, the highest since the 2008 global financial crisis.
The yen weakened to 156.75 against the U.S. dollar, as currency traders estimated that the Bank of Japan will delay its first rate cut in 2025 after the ending of spring wage negotiations in March.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 0.3% to 39,027.98, and the broader TOPIX index declined 0.03% to 2,713.50.
Tokyo Electron increased 1.4% to ¥27,035.0, Advantest Corp. gained 0.8% to ¥9,440.0, and Disco Corp., the precision tool maker for semiconductor production, jumped 5.8% to ¥9,440.0.
Nintendo Co. Ltd. advanced 1.6% to ¥9,044.0, and the game console maker struggled to erase an 8% decline last week after the company delayed the release of the Switch 2 console.
Metaplanet Inc. dropped 14.2% to ¥4,235.0 after the bitcoin-centric company soared 30% in the previous two trading days.
Metaplanet has catapulted 24-fold in the last 52 weeks of trading after the company restructured its diverse operations and focused on bitcoin-related activities in Japan.
Japan Indexes Struggled to Rise In Cautious Trading Amid Worries Related to Trade, Economy, and Rate Path
Akira Ito
21 Jan, 2025
Tokyo
Benchmark indexes in Tokyo lost early momentum after domestic economic growth and corporate earnings worries dominated market sentiment.
The Nikkei 225 declined 0.3%, and the TOPIX edged down a fraction after an early rally in the market failed to broaden beyond tech stocks.
Export-sensitive stocks led gainers after the newly appointed U.S. presidential administration delayed the promised implementation of additional and tougher tariffs to February.
Despite the delay, Japanese corporations are bracing for a sharp escalation in U.S. trade barriers, and large automotive and electronics companies are ramping up supply chain diversification away from China to Vietnam, Mexico, India, and the ASEAN region.
Moreover, market sentiment was muted ahead of the Bank of Japan's rate decision at the end of the policy meeting next week, and last week policy officials signaled the possibility of the increase in the reference rate to 0.5%, the highest since the 2008 global financial crisis.
The yen weakened to 156.75 against the U.S. dollar, as currency traders estimated that the Bank of Japan will delay its first rate cut in 2025 after the ending of spring wage negotiations in March.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 0.3% to 39,027.98, and the broader TOPIX index declined 0.03% to 2,713.50.
Tokyo Electron increased 1.4% to ¥27,035.0, Advantest Corp. gained 0.8% to ¥9,440.0, and Disco Corp., the precision tool maker for semiconductor production, jumped 5.8% to ¥9,440.0.
Nintendo Co. Ltd. advanced 1.6% to ¥9,044.0, and the game console maker struggled to erase an 8% decline last week after the company delayed the release of the Switch 2 console.
Metaplanet Inc. dropped 14.2% to ¥4,235.0 after the bitcoin-centric company soared 30% in the previous two trading days.
Metaplanet has catapulted 24-fold in the last 52 weeks of trading after the company restructured its diverse operations and focused on bitcoin-related activities in Japan.
China and Hong Kong Indexes Advanced, Country Garden Resumed Trading After 9-Month Suspension
Li Chen
21 Jan, 2025
Hong Kong
Stock market indexes in China lacked direction, but foreign investors bid up stocks in Hong Kong in the hopes of improving relations with the U.S.
The Hang Seng index jumped as much as 1%, and the mainland-focused CSI 300 index edged slightly higher.
Tech stocks, electric vehicle makers, and residential property developers advanced in Hong Kong trading after the newly appointed U.S. presidential administration delayed the ban on TikTok by 75 days.
Investors remained cautious amid uncertainties about the possible additional and tougher trade barriers targeting manufactured goods made by China-owned companies.
Investors are hoping that the electric vehicle makers, shipping companies, solar panel and component makers, and renewable energy products companies will be able to find ways to sustain recent export growth in 2025.
China Stock Movers
The Hang Seng index increased 0.9% to 20,103.25, and the mainland-focused CSI 300 index gained 0.02% to 3,830.57.
Residential property developers traded higher after Country Garden Holdings resumed trading following a nine-month suspension.
Country Garden Holdings jumped 23% to HK $0.60 after the embattled property developer released a proposal to restructure its $11 billion of liabilities to foreign investors.
Longfor Group Holdings gained 2.8% to HK $10.16, China Resources Land advanced 1.9% to HK $23.85, China Vanke Co. Ltd. soared 10.1% to HK $5.45, and Henderson Land Development decreased 0.4% to HK $22.45.
BYD increased 1.6% to HK $279.40, Li Auto advanced 4.9% to HK $93.80, and Geely Automobile Holding jumped 2.9% to HK $14.72.
China and Hong Kong Indexes Advanced, Country Garden Resumed Trading After 9-Month Suspension
Li Chen
21 Jan, 2025
Hong Kong
Stock market indexes in China lacked direction, but foreign investors bid up stocks in Hong Kong in the hopes of improving relations with the U.S.
The Hang Seng index jumped as much as 1%, and the mainland-focused CSI 300 index edged slightly higher.
Tech stocks, electric vehicle makers, and residential property developers advanced in Hong Kong trading after the newly appointed U.S. presidential administration delayed the ban on TikTok by 75 days.
Investors remained cautious amid uncertainties about the possible additional and tougher trade barriers targeting manufactured goods made by China-owned companies.
Investors are hoping that the electric vehicle makers, shipping companies, solar panel and component makers, and renewable energy products companies will be able to find ways to sustain recent export growth in 2025.
China Stock Movers
The Hang Seng index increased 0.9% to 20,103.25, and the mainland-focused CSI 300 index gained 0.02% to 3,830.57.
Residential property developers traded higher after Country Garden Holdings resumed trading following a nine-month suspension.
Country Garden Holdings jumped 23% to HK $0.60 after the embattled property developer released a proposal to restructure its $11 billion of liabilities to foreign investors.
Longfor Group Holdings gained 2.8% to HK $10.16, China Resources Land advanced 1.9% to HK $23.85, China Vanke Co. Ltd. soared 10.1% to HK $5.45, and Henderson Land Development decreased 0.4% to HK $22.45.
BYD increased 1.6% to HK $279.40, Li Auto advanced 4.9% to HK $93.80, and Geely Automobile Holding jumped 2.9% to HK $14.72.
India Movers: Central Bank, IDBI Bank, Indian Overseas Bank, Indostar Capital, IRFC, Paytm, Zomato
Arun Goswami
21 Jan, 2025
Mumbai
The Sensex and Nifty indexes extended recent declines ahead of the release of the Union Budget, worries linked to a possible rise in trade tensions with the U.S., and a persistent outflow of foreign funds.
The Sensex index advanced by 0.59% to 77,073.44, and the Nifty index increased by 0.61% to 23,344.75.
On the Mumbai stock exchange, 84 stocks traded at their 52-week highs, and 40 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.80%, and the Indian rupee traded hovered near a record low at 86.48 against the U.S. dollar.
One 97 Communications Limited decreased 0.2% to ₹897.80 after the company said revenue declined 32% in the fiscal third quarter.
Consolidated revenue in the December quarter declined to ₹2,016.5 crore from ₹2,999.1 crore, after-tax losses shrank to ₹211.85 crore from ₹221.7 crore, and diluted losses per share fell to ₹3.27 from ₹3.46 a year ago.
IDBI Bank Ltd. increased 2.5% to ₹86.12 after the company said profit soared 30% in the fiscal third quarter.
Consolidated revenue in the December quarter increased to ₹8,564.92 crore from ₹7,554.54 crore, after-tax profit jumped to ₹1,908.27 crore from ₹1,458.18 crore, and diluted earnings per share expanded to ₹1.77 from ₹1.36 a year ago.
Zomato Ltd. decreased 3.1% to ₹240.95 after the company reported a 57% decline in net income in fiscal third quarter results.
Consolidated revenue in the December quarter increased to ₹5,657 crore from ₹3,507 crore, after-tax profit narrowed to ₹59 crore from ₹138 crore, and diluted earnings per share dropped to 6 paisa from 20 paise a year ago.
Multi Commodity Exchange of India Limited decreased 0.26% to ₹6,017.35 after the company reported a decline in revenue in the December quarter.
Consolidated revenue in the fiscal third quarter increased to ₹324.36 crore from ₹209.26 crore, net income swung to a profit of ₹160 crore from a loss of ₹5.35 crore, and diluted earnings per share swung to a profit of ₹31.38 from a loss of ₹1.05 a year ago.
Indian Overseas Bank increased 3.9% to ₹52.61 after the company reported December quarter results.
Consolidated revenue in the fiscal third quarter increased to ₹8,415.34 crore from ₹7,442.66 crore, net income rose to ₹875.27 crore from ₹724.14 crore, and diluted earnings per share increased to 46 paisa from 38 paisa a year ago.
Indian Railway Finance Corporation Ltd. increased 2.3% to ₹146.65 after the company reported a slight increase in revenue and earnings in the December quarter.
Consolidated revenue in the December quarter increased to ₹6,766.39 crore from ₹6,740.02 crore, after-tax profit rose to ₹1,630.66 crore from ₹1,598.93 crore, and diluted earnings per share advanced to ₹1.25 from ₹1.22 a year ago.
Central Bank of India increased 3.1% to ₹54.41 after the company reported December quarter results.
Consolidated revenue in the December quarter increased to ₹9,774.3 crore from ₹9,171.2 crore, after-tax profit rose to ₹963.4 crore from ₹734.5 crore, and diluted earnings per share jumped to ₹1.11 from 85 paise a year ago.
Indostar Capital Finance Ltd. increased 1.4% to ₹after the company reported December quarter results.
Consolidated revenue in the December quarter increased to ₹373.6 crore from ₹238.9 crore, after-tax profit jumped to ₹27.7 crore from ₹16.9 crore, and diluted earnings per share rose to 82 paisa from 76 paise a year ago.
India Movers: Central Bank, IDBI Bank, Indian Overseas Bank, Indostar Capital, IRFC, Paytm, Zomato
Arun Goswami
21 Jan, 2025
Mumbai
The Sensex and Nifty indexes extended recent declines ahead of the release of the Union Budget, worries linked to a possible rise in trade tensions with the U.S., and a persistent outflow of foreign funds.
The Sensex index advanced by 0.59% to 77,073.44, and the Nifty index increased by 0.61% to 23,344.75.
On the Mumbai stock exchange, 84 stocks traded at their 52-week highs, and 40 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.80%, and the Indian rupee traded hovered near a record low at 86.48 against the U.S. dollar.
One 97 Communications Limited decreased 0.2% to ₹897.80 after the company said revenue declined 32% in the fiscal third quarter.
Consolidated revenue in the December quarter declined to ₹2,016.5 crore from ₹2,999.1 crore, after-tax losses shrank to ₹211.85 crore from ₹221.7 crore, and diluted losses per share fell to ₹3.27 from ₹3.46 a year ago.
IDBI Bank Ltd. increased 2.5% to ₹86.12 after the company said profit soared 30% in the fiscal third quarter.
Consolidated revenue in the December quarter increased to ₹8,564.92 crore from ₹7,554.54 crore, after-tax profit jumped to ₹1,908.27 crore from ₹1,458.18 crore, and diluted earnings per share expanded to ₹1.77 from ₹1.36 a year ago.
Zomato Ltd. decreased 3.1% to ₹240.95 after the company reported a 57% decline in net income in fiscal third quarter results.
Consolidated revenue in the December quarter increased to ₹5,657 crore from ₹3,507 crore, after-tax profit narrowed to ₹59 crore from ₹138 crore, and diluted earnings per share dropped to 6 paisa from 20 paise a year ago.
Multi Commodity Exchange of India Limited decreased 0.26% to ₹6,017.35 after the company reported a decline in revenue in the December quarter.
Consolidated revenue in the fiscal third quarter increased to ₹324.36 crore from ₹209.26 crore, net income swung to a profit of ₹160 crore from a loss of ₹5.35 crore, and diluted earnings per share swung to a profit of ₹31.38 from a loss of ₹1.05 a year ago.
Indian Overseas Bank increased 3.9% to ₹52.61 after the company reported December quarter results.
Consolidated revenue in the fiscal third quarter increased to ₹8,415.34 crore from ₹7,442.66 crore, net income rose to ₹875.27 crore from ₹724.14 crore, and diluted earnings per share increased to 46 paisa from 38 paisa a year ago.
Indian Railway Finance Corporation Ltd. increased 2.3% to ₹146.65 after the company reported a slight increase in revenue and earnings in the December quarter.
Consolidated revenue in the December quarter increased to ₹6,766.39 crore from ₹6,740.02 crore, after-tax profit rose to ₹1,630.66 crore from ₹1,598.93 crore, and diluted earnings per share advanced to ₹1.25 from ₹1.22 a year ago.
Central Bank of India increased 3.1% to ₹54.41 after the company reported December quarter results.
Consolidated revenue in the December quarter increased to ₹9,774.3 crore from ₹9,171.2 crore, after-tax profit rose to ₹963.4 crore from ₹734.5 crore, and diluted earnings per share jumped to ₹1.11 from 85 paise a year ago.
Indostar Capital Finance Ltd. increased 1.4% to ₹after the company reported December quarter results.
Consolidated revenue in the December quarter increased to ₹373.6 crore from ₹238.9 crore, after-tax profit jumped to ₹27.7 crore from ₹16.9 crore, and diluted earnings per share rose to 82 paisa from 76 paise a year ago.
Europe Movers: Bango. John Wood Group, Lufthansa, Saab, Telefonica
Inga Muller
20 Jan, 2025
Frankfurt
European markets were in a holding pattern in light trading as investors awaited the release of key earnings updates. The European Central Bank is widely anticipated to deliver its rate cut at the end of the policy meeting next week.
The DAX index increased by 0.05% to 20,913.69; the CAC-40 index rose by 0.09% to 7,716.60; and the FTSE 100 index edged higher by 0.2% to 8,522.58.
The yield on 10-year German bonds inched higher to 2.51%, French bonds rose to 3.38%, the UK gilts increased to 4.70%, and Italian bonds edged lower to 3.65%.
Bango surged 3.0% to 110.75 pence after the UK-based digital payment service provider said full-year 2024 revenue was up 16% to $53.4 million or £43.80 million.
Adjusted EBITDA rose 137% to $15.2 million as the company added nine new customers for its digital vending machine segment.
Bango ended the year with net debt of $1.7 million, down from $3.9 million in 2023.
John Wood Group Plc gained 2.1% to 69.75 pence after the UK engineering and consulting company secured a major contract to maintain onshore and offshore assets in Gippsland Basin, Victoria, operated by Esso Australia.
The project will create around 250 jobs in the state of Victoria in early 2025.
The Gippsland basin is operated by a 50-50 joint venture between Esso Australia Resources Pty Ltd and Woodside Energy Pty Ltd., run by Esso Australia.
Telefonica fell 2.7% to €3.86 after the Spanish telecom company completed the refinancing of its main syndicated credit facility of €5.5 billion or $5.68 billion.
The company placed a senior bond for an amount of €1 billion with an annual coupon of 3.72% maturing in January 2034.
The book registered a demand of €3.9 billion, or five times above the initial target of €750 million.
Hermes International traded up 0.08% to €2.49 after France-based luxury goods company recently opened doors in Bangkok’s Central Embassy retail center.
Lufthansa Group traded up 0.28% to €5.81 after the German air carrier finalized merger talks with Italian airline ITA Airways.
The company will acquire a 41% stake in a deal worth €325 million or $350 million, gaining full control by 2033 with a total investment of €829 million.
The remaining 59% will initially continue to be held by the Italian Treasury.
Saab dropped 0.13% to 223.10 krona after the Swedish aviation company expects higher 2024 organic sales growth of 23.4%, above its previous outlook at the upper end of 15% to 20% range.
Demand for rearmament is rising amid global tensions. Saab competes with defense giants such as Lockheed Martin, France's Dassault Aviation and Britain's BAE Systems.
The military hardware provider will report earnings for full year 2024 on February 7.
Europe Movers: Bango. John Wood Group, Lufthansa, Saab, Telefonica
Inga Muller
20 Jan, 2025
Frankfurt
European markets were in a holding pattern in light trading as investors awaited the release of key earnings updates. The European Central Bank is widely anticipated to deliver its rate cut at the end of the policy meeting next week.
The DAX index increased by 0.05% to 20,913.69; the CAC-40 index rose by 0.09% to 7,716.60; and the FTSE 100 index edged higher by 0.2% to 8,522.58.
The yield on 10-year German bonds inched higher to 2.51%, French bonds rose to 3.38%, the UK gilts increased to 4.70%, and Italian bonds edged lower to 3.65%.
Bango surged 3.0% to 110.75 pence after the UK-based digital payment service provider said full-year 2024 revenue was up 16% to $53.4 million or £43.80 million.
Adjusted EBITDA rose 137% to $15.2 million as the company added nine new customers for its digital vending machine segment.
Bango ended the year with net debt of $1.7 million, down from $3.9 million in 2023.
John Wood Group Plc gained 2.1% to 69.75 pence after the UK engineering and consulting company secured a major contract to maintain onshore and offshore assets in Gippsland Basin, Victoria, operated by Esso Australia.
The project will create around 250 jobs in the state of Victoria in early 2025.
The Gippsland basin is operated by a 50-50 joint venture between Esso Australia Resources Pty Ltd and Woodside Energy Pty Ltd., run by Esso Australia.
Telefonica fell 2.7% to €3.86 after the Spanish telecom company completed the refinancing of its main syndicated credit facility of €5.5 billion or $5.68 billion.
The company placed a senior bond for an amount of €1 billion with an annual coupon of 3.72% maturing in January 2034.
The book registered a demand of €3.9 billion, or five times above the initial target of €750 million.
Hermes International traded up 0.08% to €2.49 after France-based luxury goods company recently opened doors in Bangkok’s Central Embassy retail center.
Lufthansa Group traded up 0.28% to €5.81 after the German air carrier finalized merger talks with Italian airline ITA Airways.
The company will acquire a 41% stake in a deal worth €325 million or $350 million, gaining full control by 2033 with a total investment of €829 million.
The remaining 59% will initially continue to be held by the Italian Treasury.
Saab dropped 0.13% to 223.10 krona after the Swedish aviation company expects higher 2024 organic sales growth of 23.4%, above its previous outlook at the upper end of 15% to 20% range.
Demand for rearmament is rising amid global tensions. Saab competes with defense giants such as Lockheed Martin, France's Dassault Aviation and Britain's BAE Systems.
The military hardware provider will report earnings for full year 2024 on February 7.
European Markets Lacked Direction, Germany's PPI Accelerated but Residential Permits Extended Decline
Bridgette Randall
20 Jan, 2025
London
Stock market indexes in the eurozone lacked direction as investors awaited the release of key corporate earnings.
In a holiday-shortened week in the U.S., benchmark indexes in Frankfurt, Paris, and London edged slightly higher ahead of the ECB's rate decision next week.
Investors have built expectations that the central bank will announce its first rate cut in 2025 and follow through on the estimate delivered at the last policy meeting on December 12.
Despite the weakening economic backdrop, market indexes in Germany and the U.K. are hovering near record highs on the hopes that the European Central Bank will lower rates by at least 100 basis points in 2025.
This week, investors are looking forward to the release of business activities surveys in the eurozone, Germany, and the U.K.
Passenger car registration data is also scheduled to be released, and hybrid cars are likely to confirm the recent demand trend in December.
Germany's Producer Price Inflation Accelerated In December
Germany’s producer prices increased 0.8% in December compared to a year ago after more than a year of deflation.
The rise in inflation was driven by an increase in capital goods prices, particularly for machinery, motor vehicles, trailers, and semi-trailers.
Energy prices fell by 0.2% with higher heating costs, and excluding energy, producer prices rose by 1.2%.
On an annual average basis, industrial producer prices were 1.8% lower in 2024 than in 2023.
In a key economic indicator, Germany's residential building permits extended a recent string of decline amid elevated interest rates and rising construction costs.
Germany's Residential Building Permits Extended Recent Decline In November
Apartment construction permits decreased 13% or 2,700 to 17,900 in November from a year ago.
In the eleven-month period to November, residential permits declined 18.9%, or 45,200, to 193,700.
A total of 14,200 apartments were approved for new residential buildings in November 2024. This was 16.8% or 2,900 apartments fewer than in the same month last year. From January to November 2024, 158,000 new apartments were approved, 21.8% or 44,100 fewer than in the same period last year.
The number of building permits for single-family homes fell by 22.1%, or 9,900, to 34,800.
For two-family homes, the number of approved apartments fell by 12.7%, or 1,700, to 11,700.
The number of approved apartments also fell significantly in the numerically largest building type, multi-family homes, by 22.4% or 29,300 to 101,200 apartments.
Europe Indexes and Yields
The DAX index increased by 0.05% to 20,913.69; the CAC-40 index rose by 0.09% to 7,716.60; and the FTSE 100 index edged higher by 0.2% to 8,522.58.
The yield on 10-year German bonds inched higher to 2.51%, French bonds rose to 3.38%, the UK gilts increased to 4.70%, and Italian bonds edged lower to 3.65%.
The euro was higher at $1.03; the British pound inched higher to $1.22; and the U.S. dollar was higher at 91.28 Swiss cents.
Brent crude decreased $0.29 to $80.48 a barrel, and the Dutch TTF natural gas fell by €0.90 to €46.23 per MWh.
European Markets Lacked Direction, Germany's PPI Accelerated but Residential Permits Extended Decline
Bridgette Randall
20 Jan, 2025
London
Stock market indexes in the eurozone lacked direction as investors awaited the release of key corporate earnings.
In a holiday-shortened week in the U.S., benchmark indexes in Frankfurt, Paris, and London edged slightly higher ahead of the ECB's rate decision next week.
Investors have built expectations that the central bank will announce its first rate cut in 2025 and follow through on the estimate delivered at the last policy meeting on December 12.
Despite the weakening economic backdrop, market indexes in Germany and the U.K. are hovering near record highs on the hopes that the European Central Bank will lower rates by at least 100 basis points in 2025.
This week, investors are looking forward to the release of business activities surveys in the eurozone, Germany, and the U.K.
Passenger car registration data is also scheduled to be released, and hybrid cars are likely to confirm the recent demand trend in December.
Germany's Producer Price Inflation Accelerated In December
Germany’s producer prices increased 0.8% in December compared to a year ago after more than a year of deflation.
The rise in inflation was driven by an increase in capital goods prices, particularly for machinery, motor vehicles, trailers, and semi-trailers.
Energy prices fell by 0.2% with higher heating costs, and excluding energy, producer prices rose by 1.2%.
On an annual average basis, industrial producer prices were 1.8% lower in 2024 than in 2023.
In a key economic indicator, Germany's residential building permits extended a recent string of decline amid elevated interest rates and rising construction costs.
Germany's Residential Building Permits Extended Recent Decline In November
Apartment construction permits decreased 13% or 2,700 to 17,900 in November from a year ago.
In the eleven-month period to November, residential permits declined 18.9%, or 45,200, to 193,700.
A total of 14,200 apartments were approved for new residential buildings in November 2024. This was 16.8% or 2,900 apartments fewer than in the same month last year. From January to November 2024, 158,000 new apartments were approved, 21.8% or 44,100 fewer than in the same period last year.
The number of building permits for single-family homes fell by 22.1%, or 9,900, to 34,800.
For two-family homes, the number of approved apartments fell by 12.7%, or 1,700, to 11,700.
The number of approved apartments also fell significantly in the numerically largest building type, multi-family homes, by 22.4% or 29,300 to 101,200 apartments.
Europe Indexes and Yields
The DAX index increased by 0.05% to 20,913.69; the CAC-40 index rose by 0.09% to 7,716.60; and the FTSE 100 index edged higher by 0.2% to 8,522.58.
The yield on 10-year German bonds inched higher to 2.51%, French bonds rose to 3.38%, the UK gilts increased to 4.70%, and Italian bonds edged lower to 3.65%.
The euro was higher at $1.03; the British pound inched higher to $1.22; and the U.S. dollar was higher at 91.28 Swiss cents.
Brent crude decreased $0.29 to $80.48 a barrel, and the Dutch TTF natural gas fell by €0.90 to €46.23 per MWh.
China and Hong Kong Stocks Advanced Amid Prospects of Easing Trade Tensions with the U.S.
Li Chen
20 Jan, 2025
Hong Kong
Stock market indexes in China and Hong Kong advanced in Monday's trading amid optimism that the two largest economies in the world could avoid trade confrontation in the weeks and months ahead.
The Hang Seng index jumped 18%, and the mainland-focused CSI 300 index gained 0.5% following a call between the U.S. President-elect Donald Trump and China's leader Xi Jinping.
Both leaders expressed optimism about future trade relationships and military rivalry in the Indo-Pacific and Asia, and China's Vice President Han Zheng is scheduled to attend the inauguration of the next U.S. presidential administration.
Tech stocks advanced in Hong Kong amid expectations that the incoming U.S. presidential administration may find a solution for access to TikTok.
Despite the market enthusiasm, caution prevailed in mainland China trading amid a lack of clarity of implementation of fiscal stimulus measures and persistent weakness in consumer demand growth.
Moreover, China's growth in 2025 is expected to decelerate to closer to 4%, putting additional pressure on corporate earnings growth.
The People's Bank of China held its loan prime rate steady for the third month in a row, as the central bank struggled to arrest the weakening of the yuan.
The one-year loan prime rate, the reference rate for corporate and residential loans, was held steady at 3.1%, and the five-year loan prime rate, the reference rate for mortgage loans, was left unrevised at 3.6%.
China Stock Movers
The Hang Seng index increased 1.8% to 19,931.77, and the mainland-focused CSI 300 index advanced 0.5% to 3,829.68.
Alibaba Group Holding rose 4.8% to HK $84.60, JD.com Inc. advanced 7.2% to HK $157.40, and Baidu.com increased 2.7% to HK $80.80.
Li Auto advanced 3% to HK $89.35, BYD advanced 4.3% to HK $275.0, and Xpeng Inc increased 4.5% to HK $56.35.
China and Hong Kong Stocks Advanced Amid Prospects of Easing Trade Tensions with the U.S.
Li Chen
20 Jan, 2025
Hong Kong
Stock market indexes in China and Hong Kong advanced in Monday's trading amid optimism that the two largest economies in the world could avoid trade confrontation in the weeks and months ahead.
The Hang Seng index jumped 18%, and the mainland-focused CSI 300 index gained 0.5% following a call between the U.S. President-elect Donald Trump and China's leader Xi Jinping.
Both leaders expressed optimism about future trade relationships and military rivalry in the Indo-Pacific and Asia, and China's Vice President Han Zheng is scheduled to attend the inauguration of the next U.S. presidential administration.
Tech stocks advanced in Hong Kong amid expectations that the incoming U.S. presidential administration may find a solution for access to TikTok.
Despite the market enthusiasm, caution prevailed in mainland China trading amid a lack of clarity of implementation of fiscal stimulus measures and persistent weakness in consumer demand growth.
Moreover, China's growth in 2025 is expected to decelerate to closer to 4%, putting additional pressure on corporate earnings growth.
The People's Bank of China held its loan prime rate steady for the third month in a row, as the central bank struggled to arrest the weakening of the yuan.
The one-year loan prime rate, the reference rate for corporate and residential loans, was held steady at 3.1%, and the five-year loan prime rate, the reference rate for mortgage loans, was left unrevised at 3.6%.
China Stock Movers
The Hang Seng index increased 1.8% to 19,931.77, and the mainland-focused CSI 300 index advanced 0.5% to 3,829.68.
Alibaba Group Holding rose 4.8% to HK $84.60, JD.com Inc. advanced 7.2% to HK $157.40, and Baidu.com increased 2.7% to HK $80.80.
Li Auto advanced 3% to HK $89.35, BYD advanced 4.3% to HK $275.0, and Xpeng Inc increased 4.5% to HK $56.35.