European Markets On Backfoot, EU Passenger Vehicle Registrations Jumped 15%

Bridgette Randall
30 Aug, 2023
Frankfurt

European markets struggled after two days of gain and new inflation data weighed on the market sentiment. 

Market indexes lacked direction in London, Paris and Frankfurt after inflation rebounded in Spain and some German states. 

Spain's consumer inflation accelerated to 2.6% in August from 2.3% in July,  National Statistics Institute reported Wednesday. 

Investors have been cautious amid worries of hawkish stance from the European Central Bank and looming global slowdown following the uneven economic recovery in China and cooling job market in the U.S. 

 

EU Passenger Car Sales Rose In July, Battery Share Expanded 

Passenger vehicle sales in the European Union continued to increase for the twelfth month in a row, the European Automobile Manufacturers Association reported Wednesday.  

New car registration increased 15.2% to 851,200 units in July after supply chain disruptions eased and production picked up. 

Sales in four largest markets in the region rose as customers showed willingness to buy vehicles despite higher prices.

Passenger vehicle registration in France rose 19.9%, in Germany advanced 18.1%, Spain jumped 10.7% and Italy increased 8.7%. 

Battery powered vehicles garnered a larger share of the total and sales increased to 13.6% from 9.8% a year earlier. 

In the first seven months between January and July 2023, passenger vehicle sales increased 17.6% to 6.3 million. 

Despite the sustained recovery over the last two years from the pandemic-era related supply disruption,  sales in the seven-month period were 22% lower than in 2019.

 

Europe Indexes & Yields

The DAX index decreased 0.3% to 15,886.16, the CAC-40 index declined 0.3% to 7,350.99 and the FTSE 100 index advanced  0.4% 7,483.65.

The yield on 10-year German bonds decreased to 2.58%, French bonds traded lower to 3..10%, the UK gilts edged down to 4.45% and Italian bonds fell to 4.23%.

The euro edged to the lowest level since mid-June on the hopes that the central is more likely to pause its rate hike campaign and assess the impact of the multiple rate hikes on the economy. 

The euro edged lower to $1.089, the British pound to $1.266 and the U.S. dollar fetched 87.94 Swiss cents.

Brent crude increased $0.26 to $85.77 a barrel and the Dutch TTF natural gas decreased €0.40 to €34.80 per MWh.

 

Europe Stock Movers

Prudential Plc increased 3.3% to 1,017.50 pence after the British insurance company said first-half operating profit increased 6% to $1.46 billion. 

Adjusted net profit rebounded to $947 million compared to a loss of $1.5 billion in the previous year, as the insurance company sold more insurance products to mainland Chinese visitors in Hong Kong.

Sales of new insurance products soared 39% to $1.5 billion after sales in Indonesia  advanced 42%, Africa 31%, Philippines 13% and   Malaysia 12% but declined 5% in Singapore and 18% in Vietnam. 

The company increased its interim dividend by 9% to 6.26 U.S. cents. 

Instem Plc soared 40% to 825.0 pence after the UK-based software company agreed to be acquired by the U.S.-based private equity firm. 

Orsted AS dropped 24% to DKK 424.80 after the Danish renewable energy firm issued an impairment alert of up to DKK 5 billion (or $730 million) in its U.S. portfolio.   

Direct Line Insurance Group Plc decreased a fraction to 160.70 pence after the home and automobile insurer announced the appointment of Adam Winslow, a senior executive at rival Aviva. 

Delivery Hero SE dropped 7.4% to €33.12 after the online food delivery service company reported operating and net loss in the first-half.