French Wholesale Prices Ease, UK Auto Production Expands

Bridgette Randall
23 Dec, 2022
Frankfurt

European markets closed mixed in thin trading ahead of the Christmas Break. 

Investors reacted to fast spreading coronavirus infections in China and hoped that infection rates will peak soon and social mobility and regular business activities will resume in weeks and not in months. 

Market sentiment was on the defensive after core inflation index in the U.S. eased in November but stayed elevated indicating that the U.S. Federal Reserve may continue its aggressive rate hike stance. 

The DAX index increased 0.2% to 13,940.93, the CAC-40 index decreased 0.2% to 6,504.90 and the FTSE 100 index edged up 3.73 points to 7,473.01. 

The yield on 10-year German Bunds rose to 2.401%, French bonds increased to 2.91%, the UK Gilts to 3.63% and Italian bonds to 4.5%. 

The euro held near $1.06 and the British pound closed at $1.205.

 

France Wholesale Price Inflation Eased In November 

France's producer price inflation eased in November after a slight decline in energy prices. 

Industrial goods wholesale prices in the domestic market declined to 21.5% from 24.7% in October, the latest data from the statistical agency Insee showed today. 

The wholesale prices remained elevated after refined petroleum products prices dropped to 50.6% from 67.0 %in October. 

Wholesale prices of industrial goods in foreign markets rose to 11.1%. 

Total wholesale prices declined to 18.5% in November from 21.4% in October. 

 

UK Automobile Production Increases In November 

UK automobile production expands for the second month in a row in November, data from Society of Motor Manufacturers and Traders showed Friday. 

Automobile production increased 5.7% from a year ago to 80,091 in November.  

Of the total production, electrified vehicles accounted for about a third with production increasing 18.3% to 29,318 units. 

About 74.8% of total manufacturing was for exports with 57% vehicles heading to the European Union, 22% to the United States and 6% to China. 

Despite the easing of supply chain bottlenecks, production was still 25.7% lower than 107,744 in 2019.  

 

Europe Stock Movers 

European stocks were little changed ahead of the Christmas break next week and stock exchanged in London closed early.

Resource stocks led the gainers in London trading and Antofagasta, BHP Group and Anglo America gained between 0.5% and 1.2% following higher commodities prices. 

Tech stocks were among the decliners and Infineon, Aixtron and ASM Holding fell around 0.5%. 

Luxury stocks in Paris eased after the coronavirus infection flared-up in major cities and people avoided social gathering and public transport. 

Kering SA dropped 0.5% to