European Markets Looked Up and Euro Area Industrial Production Rebounded

Bridgette Randall
14 Jun, 2023
Frankfurt

Stocks advanced in the eurozone but gains were muted ahead of decisions. 

Benchmark indexes edged higher in London after crude oil and commodities prices rebounded and luxury stocks led gainers in Paris.  

Eurozone industrial production reversed previous month's decline in April after capital goods orders rebounded. 

British GDP expanded 0.2% from the previous month in April, the Office for National Statistics reported Wednesday. 

The retail and wholesale trade lifted service sector activities by 0.3% in April after falling 0.5% in March. 

On the other hand, production output declined 0.3% after expanding 0.7% in March and construction output  declined 0.6% after advancing 0.2%. 

Investors are awaiting rate decision from the Federal Reserve at 2:00 p.m. ET and from the European Central Bank Thursday. 

 

Euro Area Industrial Production Rebounded In April  

Eurozone industrial production increased 1.0% in April, reversing 3.8% decline in March, the Eurostat reported Wednesday. 

On an annual basis, industrial production increased 0.2%. 

On a monthly basis in April production of capital goods advanced 14.7% and energy 1.0%, while production of intermediate goods fell 1.0%, durable consumer goods 2.6% and non-durable consumer goods 3.0%

On an annual basis in April, production of capital goods rose 8.3% and nondurable consumer goods 0.6%, while production of durable consumer goods fell 4.6%, intermediate goods 6.2% and energy 7.4%.

Among member states, industrial production soared 21.5% in Ireland, rose 0.8% in France and flat in Germany while declined 1.8% in Spain and fell 1.9% in Italy. 

 

Europe Indexes & Yields 

The DAX index increased 0.6% to 16,319.97,  the CAC-40 index increased 0.9% to 7,355.93 and the FTSE 100 index increased 0.6% to 7,637.82. 

The yield on 10-year German Bunds inched higher to 2.45%, French bonds traded higher to 2.98%, the UK gilts edged up to 4.43% and Italian bonds increased to 4.08%.

The euro edged lower to $1.08, the British pound to $1.26 and the Swiss franc to 90.26 cents.

Brent crude increased $1.13 to $75.42 a barrel and the Dutch TTF natural gas increased €2.50 to €33.56 per MWh.

 

Europe Stock Movers

Shell PLC increased 1.7% to 2,336.50 pence after the company said it plans to increase dividend and accelerate stock buybacks. 

Puma SE increased 0.6% to €51.60 after the German footwear company announced a corporate reorganization. 

Wacker Neuson SE soared 6% to €21.85 after the Germany-based construction equipment company set a target to increase its sales by 78% in 2030. 

Entain Plc declined 8% to 1,212.0 pence after the company agreed to acquire Poland-based STS Holdings for £750 million. 

Heidelberger Druckmaschinen AG declined 6.5% to €1.59 after the company forecasted cautious outlook for the current fiscal year. 

Safestore Holdings plc decreased 1.5% to 917.0 pence after the company said its pre-tax profit in the first-half declined 64%. 

Grifols SA Class A soared 8.3% to €11.99 after the Spanish pharmaceutical company announced its plan to sell its stake in Shanghai RAAS for $1.5 billion. 

Logitech International SA plunged 10% to CHF 51.68 after the company said its chief executive officer Bracken Darrell plans to leave the company.