European Markets Struggle After Mixed Economic Data and Earnings

Bridgette Randall
25 Oct, 2022
Frankfurt

European markets traded mixed after German business confidence fell less than expected. Energy prices continued to slide on China demand worries and looming recession. 

The Ifo Business Climate index declined to 84.3 in October from revised 84.4 in September, Ifo institute said Tuesday. 

The index dropped to the low last seen in May 2020, during the early period of the coronavirus pandemic. 

Ifo also estimated German economy to contract by 0.6% in the fourth quarter. 

A separate report showed UK manufacturing outlook worsened according to the latest report from the Confederation of British Industry.

The order book balance declined to -4 in October from -2 in September according to the monthly survey released by the association Tuesday. 

New orders in the quarter to October declined on the fall in domestic orders to -8% from +11% and the largest fall in export orders since the quarter ending in July to -18% from -2%.      

Wholesale prices in Spain rose at a slower pace of 35.6% in September from the upwardly revised 42.9% in August, the National Statistics Institute of Spain reported Tuesday. 

The DAX index dropped 0.8% to 12,831.67, the CAC-40 index increased 0.4% to 6,156.92 and the FTSE 100 index dropped 0.9% to 6,952.39. 

Brent crude oil declined to the level last seen in March on the demand worries and slowing economic activities in China. 

Brent crude oil declined $1.15 to $92.10 a barrel and TTF natural gas increased 1.7% to 100,16 euros a MWh. 

Alfa Laval AB plunged 11% to 257.90 Swedish krona after the engineering company reported lower-than-expected third quarter earnings. 

UBS Group AG increased 5.5% to 15.98 Swiss francs after the bank reported better-than-expected earnings. 

HSBC Holdings plunged 6.9% to 442.14 pence after the U.K.-based bank reported larger-than-expected loan losses in it third quarter results.