European Markets Trade Sideways, Euro and Pound Traded 16-month Highs

Bridgette Randall
18 Jul, 2023
Frankfurt

European markets were nearly unchanged and investors awaited the release of key economic data and corporate earnings later today. 

Market indexes extended lackluster trading for the second day in a row after China reported weaker-than-expected economic data. 

Market sentiment was also cautious on the growing worries that the European Central Bank is likely to keep its aggressive rate hike stance despite the raft of cooling inflation data. 

Luxury stocks traded lower in Paris and resources stocks edged down in London for the second day following the mixed economic data.  

Investors looking ahead to the start of corporate earnings season this week. 

Large and small banks are in focus and investors are looking for insights in how banks are handling the stress of rising deposit costs and losses in government bonds held by banks.  

 

Europe Indexes & Yields

The DAX index decreased 0.05% to 16,060.51, the CAC-40 index advanced 0.02% to 7,293.26 and the FTSE 100 index increased 0.05% to 7,410.06. 

The yield on 10-year German Bunds inched higher to 2.37%, French bonds traded lower to 2.92%, the UK gilts edged up to 4.37% and Italian bonds increased to 4.02%.

The euro edged higher to $1.12, the British pound to $1.31 and the U.S. dollar fetched 85.80 Swiss cents

Brent crude decreased $0.17 to $78.67 a barrel and the Dutch TTF natural gas decreased €0.17 to €25.28 per MWh.

 

Europe Stock Movers

Novartis AG gained 3% to CHF 87.52 after the company lifted its annual earnings outlook and mapped out a plan to spin off its generic pharmaceutical division in the fourth quarter. 

The company board also approved the repurchase of $1.5 billion of its stock. 

SEB AB declined 0.6% to kr 122.65 in Stockholm trading  and the Swedish bank reported earnings ahead of market expectations. 

Danone SA declined 0.3% to €55.06 and a day ago Russia announced to takeover a stake held by the company in its Russian subsidiary. 

AstraZeneca plc gained 0.5% to 10,250 pence on a report that the U.S. Food and Drug Administration has approved the company and its partner Sanofi's antibody therapy to prevent respiratory syncytial virus in infants and toddlers.