8th Day of Decline In European Markets On Economic Growth and Rate Path Worries

Bridgette Randall
08 Sep, 2023
Frankfurt

European markets extended losses for the eighth session in a row amid growing worries of global economic slowdown and rate hikes in the Euro Area and in the U.S. 

Market indexes in Paris, London and Frankfurt declined and are set to close down between 1% and 2% for the week. 

In economic news, German inflation edged slightly lower to 6.1% in August from 6.2% in July, the Federal Statistics Office or Destatis reported Friday. 

The inflation remained elevated because of the sustained increase in food and energy prices. 

The inflation measure was first estimated at 6.1% on August 30.  

French industrial output rebounded 0.8% on a monthly basis in July after declining 0.9% in June, the statistical agency INSEE reported Friday. 

On an annual basis, industrial production rose 2.7%.

However, Spain's industrial production declined 1.8% from a year ago, following the upwardly revised 3.2% fall in the previous month, the statistical agency INE reported Friday.  

Spain's industrial production declined for the fourth month in a row after output declined in durable consumer goods, intermediate goods and energy production. 

 

Europe Indexes & Yields

European markets have been on the decline for the last five weeks on the worries of economic slowdown and higher interest rates that could dip the economy into a deeper recession. 

For the week, the DAX declined 1.6%, the CAC 40 fell 2.0% and the FTSE index dropped 0.3%. 

The DAX index decreased 0.4% to 15,659.63, the CAC-40 index declined 0.1% to 7,188.91 and the FTSE 100 index inched down 0.1% to 7,431.18.

The yield on 10-year German bonds increased to 2.61%, French bonds traded lower to 3.14%, the UK gilts edged up to 4.45% and Italian bonds rose to 4.35%.

The euro edged lower to $1.069, the British pound to $1.247 and the U.S. dollar fetched 89.19 Swiss cents.

Brent crude increased $0.66 to $90.58 a barrel and the Dutch TTF natural gas increased €3.95 to €38.70 per MWh.

 

Europe Stock Movers

Berkeley Group Holdings PLC declined 0.7% to 3,946.0  despite the company reaffirming its earnings outlook for the year. 

Restaurant Group Plc gained 4.4% to 46.16 after chairman Ken Hanna announced his plan not to seek reelection at the next annual general meeting in 2024. 

Computacenter Plc soared 15.4% to 2,488.0 after the computer services provider reported "extraordinary" growth in its first-half revenue. 

Capgemini SE increased 0.6% to €169.15 after the company agreed to acquire the Finance Crime Compliance division of a software as a service firm Exiger. 

Casino Guichard Perrachon SA rose 2.1% to €2.13 after the heavily leveraged French supermarket company is scheduled to be removed from the SBF-120 index that tracks major French companies. 

Saipem SpA increased 0.7% to €1.48 after the Italian energy services group won two new offshore energy field services contracts in Italy and Ivory Coast worth €850 million.