European Markets Struggle Amid More Layoffs, German GDP Expanded In 2022

Bridgette Randall
30 Jan, 2023
Frankfurt

European markets closed mixed as investors braced for a busy week of corporate earnings and central bank policy meetings. 

Semiconductor maker ASML Holding NV declined 2.7% in Amsterdam trading after the company said it is awaiting the details of legislation focused on export controls to China in a statement released on Friday. 

 

Germany's GDP Shrank In December Quarter 

Germany's economy contracted in the final quarter of 2022 but expanded in 2022 despite the supply chain challenges and elevated energy prices and weakening consumer spending. 

Germany's real GDP decreased 0.2% on the quarter in the final three months of 2022 from the upwardly revised 0.5% in the third quarter, the Federal Statistical Office or Destatis reported Monday. 

In 2022, real GDP after adjusting for prices increased 1.8% and rose 1.9% after adjusting for prices and calendar days. 

 

Italian Wholesale Prices Accelerated In December

Italian wholesale price indexes rose in December to 31.7%, accelerating for the second month in a row from 29.4% in the previous month, the Italian National 

On a monthly basis prices rose 2.9% from 2.6% in November.

 

European Indexes Closed Lower 

The DAX index fell 0.2% to 15,126.08, the CAC-40 index declined 0.2% to 7,082.01 and the FTSE 100 index rose 0.3% to 7,784.87. 

Brent crude fell $1.25 to $85.26 a barrel and the Dutch natural gas TTF  futures contract price inched up 2% to €56.55 per MWh. 

The yield on 10-year German Bunds rose to 2.28%, French bonds increased to 2.75%, UK Gilts to 3.35% and Italian bonds advanced to 4.28%.  

The euro increased to 1.089, the pound traded down to $1.238 and the Swiss franc inched higher to 92.32 U.S. cents. 

 

Europe Movers 

Renault SA declined 4.1% to €36.63 after the company agreed to adjust its holding structure in a partnership with Nissan in Japan. 

After months of tense discussions, Nissan and Renault agreed to limit and neutralize their cross holdings and voting rights to 15%. 

Renault will transfer 28.4% stake in a French trust but retain economic rights for those shares and any gains associated with the sale of the stake. 

Renault acquired a stake in the near-bankrupt Nissan in early 1999 and Mitsubishi Motor acquired a stake in the alliance in 2016. 

Renault also signed a pact with China-based  Geely Automobile to manufacture powertrains for hybrid and internal combustion engine powered vehicles. 

Separately, the French automaker struck a strategic deal with the U.S.-based Qualcomm for its new electric and software company, Ampere. 

Philips SA rose 7% to €16.64 and the company said it plans to layoff another 6,000 following the recall of faulty respirators. 

Prosus NV declined 6.3% to €73.89 after the company said it plans to cut staff reflecting macroeconomic headwinds.  

Prosus and its South Africa-based parent Naspers Ltd plan to lay off 30% of its corporate staff, chief executive officer Bob van Dijk said in an interview. 

888 Holdings plunged 28% to 74.85 pence after the company announced the departure of chief executive and executive director Itai Pazner.  

DEUTZ AG increased 1.9% to €4.97 after the German internal combustion engine maker said it struck two deals with Daimler Truck Holdings AG to develop medium- and heavy-duty commercial engines.