Another Batch of Positive Earnings In Europe, Economic Sentiment Index Improved

Bridgette Randall
27 Apr, 2023
Frankfurt

The European markets struggled to advance and investors reviewed a slew of corporate earnings amid renewed concerns for the banking sector. 

The latest batch of corporate results showed better-than-expected earnings from STMicroelectronics, BBBVA, Deutsche Bank and Barclays and Unilever. 

Despite the stronger-than-expected corporate performance, investors worried about the rate path and looming economic slowdown in the quarters ahead. 

Moreover, U.S. regional bank worries resurfaced after First Republic Bank sought additional capital from new equity and bond investors.  

Investors also looked ahead to the release of the U.S. GDP data today and the Price Consumption Expenditures Price Index, a wider measure of inflation, on Friday. 

 

Economic Sentiment Index In Euro Area Improved In April 

The economic sentiment indicator in the Euro Area improved to 99.3 in April from 99.2 in March, the European Commission reported Thursday. 

The confidence indicator improved after service providers' confidence index increased to 10.5 from 9.6, consumer confidence index improved to -17.5 from -19.1 and traders to -1.0 from -1.5. 

However, the confidence index among manufacturers declined to -2.6 from -0.5. 

Inflation expectation index declined to 15.0, the lowest level of index since December 2020. 

 

Spain's Jobless Rate Advanced

Spain's jobless rate rose to 13.26% in the first quarter ending in March from 12.87% in the last quarter ending in December, the National Statistics Institute reported Thursday.  

The unemployment rate was 13.65% in the first quarter a year ago. 

The number of unemployed people increased 103,800 to 3.128 million, while the number of employed declined 11,100 to 20.453 million.

The employment market expanded by 368,000 in the last twelve months, improving the participation rate. 

The labor force participation rate was 58.55% in the first quarter compared to 58.52 in the fourth quarter of 2022. 

 

Indexes & Yields 

The DAX index increased 0.1% to 15,822.81, the CAC-40 index advanced 0.4% to 7,500.03 and the FTSE 100 index gained 0.06% to 7,858.00.

The yield on 10-year German Bunds eased to 2.41%, French bonds to 2.99%, the UK gilts to 3.73% and Italian bonds to 4.29%.

The euro hovered near a one-year high against the dollar as the U.S. economy faced banking turmoil. 

The euro edged higher to $1.103, the British pound to $1.248 and the Swiss franc to 89.33 cents.

Brent crude rose 3 cents to $77.71 a barrel and the Dutch TTF natural gas increased 45 cents to €39.00 per MWh.

 

Stock Movers 

Deutsche Bank increased 0.9% to €9.64 after Germany's largest bank reported its highest profit in a decade. 

Barclays PLC advanced 3.8% to 159.72 pence after the U.K. based bank reported first quarter profit jumped 27% to £1.78 billion. 

Unilever PLC gained 1.9% to 4,455.0 pence after the consumer products maker reported higher-than-expected first quarter sales despite the worries of higher prices. 

STMicroelectronics NV declined 4.2% to €40.45 after the Netherlands-based advanced electronics  company announced quarterly results ahead of market expectations. 

Deutz AG increased 3.2% to €5.97 after the German engine maker expressed more confidence about the full-year 2023 results. 

Schneider Electric SE increased 2.4% to €155.60 after the French multinational company reported first quarter results and lifted its 2023 outlook.