European Markets Down Third Quarter In a Row, Inflation Accelerates

Bridgette Randall
30 Sep, 2022
Frankfurt

European markets traded lower after the release of eurozone inflation, unemployment data. 

Market indexes struggled after inflation shot up to a record high in August in the euro area and showed no signs of easing, stoking worries that the large-sized rate hikes may continue.   

 

Eurozone Inflation Accelerates 

Consumer prices rose at the fastest annual pace 10.0% in September after rising at 9.3% in August, the Eurostat said Friday. 

The inflation rate in September increased to 1.2% from the previous month 

Inflation accelerated for the fifth month in a row and showed no signs of easing, raising pressure on the central bank to lift rates. 

Food, tobacco and beverages prices accelerated to 11.8% from 10.6% in August, energy prices rose 40.8% from 38.6% and services increased 4.3% from 3.8%. 

Among the larger member countries in the eurozone, Germany recorded the largest inflation rate of 10.9% in September from 8.8% in September, followed by Italy with 9.5% compared to 9.1% but the rate slowed in France to 6.2% from 6.1% and in Spain to 9.3% from 10.5%.  

Prices in Estonia, Latvia and Lithuania surged between 22% and 24.5% in the month on an annual basis. 

 

Euro Area Unemployment Rate 6.6% 

Seasonally adjusted unemployment rate was 6.6% in August, the Eurostat reported Friday. 

The jobless rate was stable from July and fell from 7.5% from a year ago

The unemployment rate was stable at 6.0% in August in the European Union from the previous month and declined from 6.8% a year ago. 

About 12,92 million people were unemployed in the European Union and 10.966 million were in the euro area. 

 

UK Revises Q2 GDP Rate Higher  

 

UK GDP growth was revised higher to 4.4% from a year ago from the previous estimate of 2.9%, the Office for National Statistics reported Friday. 

Despite the upward revision, the British GDP growth rate is still the smallest in five quarters.

The statistical office also revised the data for 2020 and 2021.  

UK GDP is now estimated to have contracted 11.0% in 2020, revised from the previous estimate of a fall of 9.3%. 

In 2021, UK GDP is estimated to have expanded by an upwardly revised 7.5% from the previous estimate of 7.4%.

 

 

Euro Area Indexes Down Third Quarter In a Row

European markets are set close down for the third quarter in a row for the first time since early 2011. 

The DAX index closed up 1.2% to 12,114.36, the CAC-40 index added 1.5% to 5,762.34 and the FTSE 100 index rose 0.2% to 6,893.11. 

For the quarter, the DAX fell more than 5%, the CAC-40 dropped 2.5% and the FTSE 100 index eased 4%. 

The Swiss Market Index spent the entire session in the negative territory and closed down 93.77 points or 0.92% to 10,126.99. 

For the quarter, the SMI is down about 5%. 

 

Europe Stock Movers 

Dignity PLC dropped 7.6% to 365.29 pence after the funeral-related services provider reported first-half loss on rising costs and falling revenue. 

Clariant AG increased 7.7% to 15.90 Swiss francs after Credit Suisse upgraded stock to "outperform" and lifted its price target. 

Webuild SpA jumped 5.6% to 1.26 euros after the company said its 2022 results are expected to be "significantly" ahead of the guidance. 

The company also won a contract worth