European Indexes Hold Amid Data Deluge, Eurozone GDP Barely Expanded

Bridgette Randall
16 May, 2023
Frankfurt

European markets showed little movement amid a flood of economic data and corporate earnings. 

Investors generally stayed on the sidelines after China reported weaker than expected rebound in retail sales, fixed investments and industrial production in April. 

In the UK jobless rate increased to 3.9% in the first quarter from 3.8% in the last quarter of 2022, the Office for National Statistics reported Tuesday. 

The slight increase in the jobless rate supported the case that the Bank of England may pause rate hike at its next policy meeting on June 22. 

Closer to home, investors digested economic growth data in the eurozone in the first quarter. 

 

Euro Area GDP Barely Increased In Q1

Seasonally adjusted GDP in the first quarter in the Euro Area barely increased 0.1% from the previous quarter and 0.2% in the Eu, according to the flash estimate released by Eurostat Tuesday. 

Compared with the same quarter of the previous year, seasonally adjusted GDP increased 1.3% in the euro  area and 1.2% in the EU in the first quarter, after rising 1.8% in the euro area and 1.7% in the EU in the  fourth quarter of 2022. 

During the first quarter of 2023, GDP in the United States increased 0.3% compared to the previous quarter and increased 1.6% from a year ago. 

Spain led the region with GDP expanding 3.8% from a year ago followed by 2.6% in Ireland, 2.8% in Romania, 2.5% in Portugal, 0.8% in France and -0.1% in Germany. 

 

Employment Expands in Euro Area and EU 

The number of employed persons increased 0.6% in both the euro area and the EU in the first quarter of 2023, compared with the previous quarter. 

In the fourth quarter of 2022, employment had increased 0.3% in both the euro area and the EU.

On an annual basis, employment increased 1.7% in the euro area and 1.6% in the EU in the first quarter, after rising 1.5% in the euro area and 1.3% in the EU in the fourth quarter  of 2022.

 

Europe Indexes & Yields 

The DAX index increased 0.1% or 20.14 points to 15,937.81, the CAC-40 index rose 0.02% or 1.62 points to 7,419.83 and the FTSE 100 index advanced 0.08or 6.12 to 7,783.96. 

The yield on 10-year German Bunds inched down to 2.26%, French bonds traded slightly lower to 2.89%, the UK gilts inched lower to 3.74% and Italian bonds decreased to 4.14%.

The euro edged higher to $1.089, the British pound to $1.253 and the Swiss franc to 89.29 cents.

Brent crude decreased 7 cents to $75.15 a barrel and the Dutch TTF natural gas increased €0.05 to €32.36 per MWh.

 

Europe Stock Movers 

Vodafone Group dropped 5% to 85.02 pence after the company said it plans to cut as many as 11,000 jobs in the next three years. 

The newly appointed chief executive Margherita Della Valle also said free cash flow in 2023 is likely to decline by €1.5 billion. 

Embracer Group plunged 16% to SEK 44.40 after the game developer reiterated its annual earnings outlook. 

Britvic Plc increased 1.2% to  939.28 pence after the beverage maker reported an increase in first-half pre-tax profit driven by higher sales. 

Imperial Brands plc declined 0.6% to  1,862.72 pence after the cigarette maker reiterated its full-year outlook. 

Bouygues SA decreased 2.5% to 30.92 after the French construction to telecom group reported a slight increase in first quarter net loss.