Europe Stocks Fall on Weak Retail Sales, UK Debt Rating Cut

Bridgette Randall
06 Oct, 2022
Frankfurt

European markets traded lower after inflation jitters and rate hike worries resurfaced.

European markets traded sideways in the morning trading but turned lower following the weakness in New York. 

Indexes closed near their lows as investors focused on the UK debt rating cut and retail sales fell in the eurozone and Germany factory orders also declined. 

Bond yield also rose ahead of the U.S. jobs report Friday and investors are anticipating at least 270,000 net new job additions in September. 

The yield on 10-year German bonds rose to 2.1%, U.K. Gilts increased to 4.19%, French bonds edged up to 2.69% and Italian bonds inched higher to 4.519%.  

The DAX index fell 0.1% to 12,470.78, the CAC-40 index dropped 0.8% to 5,936.42 and the FTSE 100 index dropped 0.80% to 6,997.27.

The euro inched lower to 98.38 U.S. cents and the British pound declined to $1.124.  

Crude oil traded down despite yesterday's production cuts announced by the OPEC and allied nations. 

Brent crude oil gained 40 cents to $93.75 a barrel and natural gas futures fell 2% to 170.33 euros a megawatts an hour.

 

Stock Movers 

Shell PLC fell 3.2% to 26.31 after the energy giant said its natural trading and refining division is facing difficult times. 

Skanska AB gained 2.9% to 141.35 Swedish kroner after the company signed a deal with Metropolitan Transport Authority of New York to replace ageing escalators. 

Credit Suisse AG increased 2.6% to 4.22 Swiss francs after JP Morgan upgraded the stock to "neutral" from "underweight."

Imperial Brands gained 2.4% to 1,941.88 pence after the tobacco and cigarette company said fiscal 2022 performance is in-line with company's expectations. 

The company also announced a stock repurchase plan of one billion  pounds. 

Halma Plc gained 0.7% to 2,156.78 pence after the company said it has agreed to acquire Weetech Holding GmbH for