European Markets Trade Higher After Crude Oil and Copper Advanced

Bridgette Randall
25 Jul, 2023
Frankfurt

European markets traded slightly higher as investors awaited rate decisions this week and reacted to corporate earnings. 

Investors are looking ahead to policy decisions from the Federal Reserve Bank, the European Central Bank and the Bank of Japan. 

The Fed and the ECB are widely expected to raise rates by at least 25 basis points and the Bank of Japan is expected to keep its ultra-loose policy intact despite steady rise in inflation in recent months. 

Crude oil traded at a new 3-month high and natural gas edged higher after China pledged more stimulus measures to support faltering economic momentum and depressed property market. 

Copper traded up 2% to $3.93 per pound on the hopes of China measures spurring additional demand. 

Hong Kong stocks soared 4% on the hopes of more measures to revive the flagging property market. 

German business confidence deteriorated for the third month in a row in July, the Ifo Institute survey showed today.  

The business climate index decreased to 87.3 in July from 88.6 in the previous month, a decline for the third month in a row. 

 

Europe Indexes & Yields

The DAX index increased 0.2% to 16,216.70, the CAC-40 index advanced 0.2% to 7,450.23 and the FTSE 100 index gained 0.2% to 7,686.32. 

The yield on 10-year German bonds decreased higher to 2.43%, French bonds traded lower to 2.99%, the UK gilts edged down to 4.28% and Italian bonds increased to 4.08%.

The euro edged higher to $1.10, the British pound to $1.28 and the U.S. dollar fetched 86.99 Swiss cents

Brent crude increased $0.20 to $82.94 a barrel and the Dutch TTF natural gas increased €1.14 to €32.69 per MWh.

 

Europe Stock Movers

China's pledge to support the property sector after the Politburo meeting chaired by Xi Jinping, lifted commodities prices. 

Antofagasta, Glencore and Anglo American advanced between 2% and 4%. 

UBS Group AG increased 1.2% to CHF 18.24 and the Swiss banking giant was fined $400 million by regulators in Switzerland, U.S. and U.K. for misconducts of Credit Suisse, acquired by the bank in June.  

Unilever Plc jumped 4.8% to 4,213.0 pence after the consumer products company reported better than expected sales in its latest quarter. 

Ashtead Group Plc dropped 0.5% to 5,560.0 pence after the company priced its 5.95% senior notes worth $750 million. 

Bayer AG declined 3.8% to $13.87 after the German chemical company lowered its fiscal year 2023 outlook and cited deteriorating macroeconomic outlook.  

Dassault Systemes SE declined 3.9% to €38.50 after the French software company reported weaker-than-expected revenue growth in its latest quarter. 

Remy Cointreau SA increased 3.8% to €151.90 after the company reiterated its fiscal 2024 outlook. 

Thales SA declined 0.5% to €131.70 after the French defense company agreed to acquire cyber security company Imperva for $3.6 billion.