Inflation In Germany and Spain Eases, Swiss GDP Growth Slows

Bridgette Randall
29 Nov, 2022
Frankfurt

European markets opened on an optimistic note but struggled to advance. 

Stocks rebounded in early trading across Europe after China reported a slight decline in daily infection rates. 

Chinese health authorities also laid out a plan to increase vaccination for senior citizens and review measures to ease stricter lock downs. 

China also offered more financial incentives for the struggling property sector, lifting benchmark indexes in Hong Kong by 5% and Shanghai by 2.4%. 

Inflation data from Germany and Spain showed a slight decline from the previous month, but remained near 4-decade high levels. 

 

Germany's Inflation Hovers Near Record High

 The consumer price index in Germany eased to 10.0% in November from the record 10.4% in October, significantly higher than 2.0% target rate set by the ECB.

 

Spain's Inflation Eases 

The consumer price index in Spain increased at a 6.8% annual pace in November, slower than the 7.3% rise in October, the data from the statistical office INE showed Tuesday. 

The CPI slowed for the fourth month in a row after reaching a high of 10.8% in July. 

Unlike Germany and the UK, Spain avoided the energy crisis with the help of significant regasification capacity and larger footprint of renewable energy. 

 

Swiss GDP Growth Slows 

The Swiss economy expanded at a slower pace in the third quarter ending in September, the State Secretariat for Economic Affairs in Bern said Tuesday. 

GDP expanded at an annual pace of 0.5% in the third quarter after rising at 2.2% annual pace in the second quarter.

Third quarter expansion was driven by the 0.7% increase in household consumption despite the elevated inflation but slower than the 1.1% increase in the previous quarter.   

 

Turkish Trade Deficit Widens 

The Turkish trade deficit rose in October to $7.4 billion from $4.3 billion a year ago but declined from $9.6 billion a year ago, the Turkish Statistical Institute said Tuesday. 

 

Market Indexes 

The DAX index decreased 0.2% to 14,355.45, the CAC-40 index increased 3.37 points to 6,668.97 and the FTSE 100 index added 0.5% to 7,512.00. 

Brent crude oil was unchanged at $83.10 a barrel and Dutch TTF natural gas price increased 7.3% to 132.29 euros a MWh. 

The euro edged down to $1.032 and the British Pound inched lower to $1.194. 

 

Stock Movers 

HSBC Holdings soared 3.6% to 507.56 pence after the British bank said it agreed to sell its Canada business for $10 billion to Royal Bank of Canada. 

HSBC has been looking to trim down its expenses in the U.S. and also sell its non-core assets. 

The bank plans to distribute proceeds of the Canada business sales through a special dividend to shareholders. 

Vodafone Group was nearly unchanged at 92.84 pence after the British telecom group launched a buyback offer up to $2.3 billion of its 4.375% notes due in May 2028.

Brenntag SE declined 2.4% to