European Markets Jump 4% After Volatile Week

Bridgette Randall
28 Oct, 2022
Frankfurt

European markets traded sideways on the last day of the week and investors digested the latest batch of earnings a day after the ECB lifted the rate by 0.75%. 

Germany's consumer price inflation accelerated in October to 10.4% from 10.0% in September, Destatis said in a report Friday. 

The annual inflation accelerated after goods prices rose at a faster pace of 17.8% from 17.2%, food prices increased 20.3% from 18.7% and high energy prices jumped 43% from 43.9%. 

Service prices rose at a faster pace 4.0% from 3.6% in the previous month and rent price increased to 1.8% from 1.7%. 

October inflation on a monthly basis increased to 0.9%. 

The French inflation rose 6.2% in October from 5.6% in September, the statistical office INSEE reported Friday. 

The October inflation was the strongest since 1985. 

Another report from the Destatis showed that the German economy unexpectedly rose in the third quarter.

Germany's GDP rose 0.3% in the third quarter after rising 0.1% in the second quarter. 

Most economists were anticipating 0.2% contraction in the third quarter.  

French economy expanded at a slower pace of 0.2% from the second quarter when the economy logged 0.5% growth, the statistical office INSEE reported Friday. 

The stagnant household spending and weaker exports dented the growth in the third quarter.  

The DAX index rose 0.2% to 13,243.33, the CAC-40 index increased 0.5% to 6,273.06 and the FTSE 100 index declined 0.4% to 7,047.67. 

For the week, the DAX and the CAC-40 jumped 4% and the Swiss SMI index gained 3.3% and the FTSE 100 advanced 1%. 

The yield on 10-year German Bunds increased to 2.09%, French bonds rose to 2.62%, the UK Gilt increased to 3.45% and Italian bonds to 4.19%. 

The euro traded at 99.59 U.S. cents and the British pound inched up to $1.15. 

Brent crude decreased to $1.01 to $95.92 a barrel and TTF natural gas futures rose 2.5% to 110.45 euros a MWh. 

Swiss Re dropped 2.4% to 75.42 Swiss francs after the company posted net loss in the third quarter and in the nine-month period of fiscal 2022. 

Danone SA gained 2.9% to