European Markets Trend Lower, German Wholesale Inflation Eases

Bridgette Randall
21 Nov, 2022
Frankfurt

Major averages in Europe traded lower after commodities-linked stocks led the decliners on rising coronavirus infections in China.

Geopolitical tensions were also on the rise int the region after Russia escalated bombing around the Zaporizhzhya nuclear power plant.

European markets generally looked beyond an urgent call from the International Atomic Energy Agency "to help prevent nuclear accident" in the Russia-held power plant in Ukraine. 

The agency said several parts of the power plant facilities appeared to be damaged but showed no signs of a radiation leak.  

The DAX index declined 0.4% to 14,379.93, the CAC-40 index fell 0.2% to 6,634.45  and the FTSE 100 index edged lower 0.1% to 7,376.85.

Markets were also on the defensive after coronavirus infections surged in China, prompting authorities in several cities to impose stricter lockdowns. 

In economic news,  German producer price inflation in October eased to 34.5% form 45.8% in September, the lowest level in four months, Destatis data showed.

The euro edged slightly lower to $1.02 and the British pound declined to $1.18. 

On a monthly basis, the producer prices declined 4.2% in October, reversing the gain of 2.3% in September. 

The yield on 10-year German Bunds held steady at 2.024%, French bonds eased to 2.46%, the UK Gilts inched lower to 3.179% and Italian bonds edged up to 3.97%. 

Resource stocks were among the leading decliners after commodities prices eased on China demand worries. 

Brent crude oil fell as much as $82.11 before recovering to $87.31 a barrel and TTF natural gas futures  gained 0.5% to 116.13 per MWh. 

BHP Group, Antofagasta and Glencore fell between 1.5% and 2.0% in London trading. 

Virgin Money soared 13.5% to 165.15 pence after the British-lender reported better-than-expected full-year results. 

The company also announced a stock repurchase program of