German Factory Orders Advanced, UK Home Price Increased

Bridgette Randall
07 Mar, 2023
Frankfurt

Stocks in Europe lacked direction and investors reacted to local earnings and awaited commentary from the U.S. Federal Reserve chairman Jerome Powell. 

France's benchmark index advanced to a new record high and Germany's index traded at a new one-year high after energy prices eased for the third week in a row. 

German factory orders unexpectedly rose and the UK's home prices rose at the fastest pace in eight months. 

 

German Factory Orders Unexpectedly Rose In January 

German factory orders rose unexpectedly in January driven by demand from international customers. 

German factory orders increased 1.0% in January from the revised 3.4% in December, the Federal Statistical Office or Destatis said Tuesday. 

Manufacturing new orders on an annual basis declined at a faster rate of 10.9% in January after dropping 9.9% in December. 

 

UK Home Prices Increased at 8-month High Rate

Home prices in the UK rose at a faster pace in February underpinned by the improving confidence and resilient labor markets. 

Despite the cost of living crisis, home prices rose 1.1% in February after rising 0.2% in January, S&P Global and Halifax said in a report released Tuesday. 

Home prices rose for the second month in a row and jumped at the fastest pace since June 2022. 

The average home price increased to £285,476 in February compared to £282,360 in January.

 

Indexes & Yields 

The DAX index increased 0.2% to 15,678.50, the CAC-40 index added 0.2% to 7,387.18 and the FTSE 100 index advanced 0.3% to 7,949.76. 

The yield on 10-year German Bunds edged down to 2.66%, French bonds to 3.15%, the UK gilts to 3.78% and Italian bonds to 4.45%. 

The euro hovered near $1.065, the British pound inched lower to $1.19 and the Swiss franc to 93.36 cents. 

Brent crude oil eased 56 cents to $85.56 a barrel and the Dutch TTF natural gas edged up to Є42.05 per MWh. 

 

Europe Stock Movers 

Schaeffler AG fell 7.3% to €6.84 after the Germany-based bearings maker reported a decline in financial year 2022 profit and issued a cautious outlook for 2023. 

The company also trimmed its dividend. 

Henkel AG declined 2.2% to €67.70 after the German chemical and consumer goods company reported a 13.7% decline in its adjusted operating earnings in 2022. 

HelloFresh SE decreased 6.9% to €21.16 after the meal-kit maker estimated lower-than-expected core profit in 2023. 

Ashtead Group plc increased 3.3% to 5,936.0 pence after the UK-based equipment rental company said annual results are likely to surpass its own estimate. 

Zalando SE increased 3.4% to €40.15 after the online marketplace operator said it plans to focus on improving its operating margins and eliminate unnecessary costs. 

John Wood Group Plc increased 14.3% to 221.80 pence after the UK-based engineering company said it is likely to reject the latest buyout proposal from the private equity group Apollo Global Management. 

Greggs Plc declined 0.7% to 2,732.0 pence after the bakery and fast food chain said that the company is facing inflationary cost pressures.