Mixed European Markets, German Wholesale Inflation Fell for 5th Consecutive Month

Bridgette Randall
12 Sep, 2023
Frankfurt

European markets traded mixed and investors awaited interest rate decisions from the European Central Bank and the U.S. inflation data. 

Investors looked for bargains in cautious trading amid uncertainty about the interest rate policy and looming global economic slowdown. 

German wholesale inflation declined for the fifth month in a row, the Federal Statistics Office or Destatis reported Tuesday. 

Producer price index declined 2.7% in August from a year ago because of a 15.8% decline in mineral oil products after prices eased from elevated prices compared to the previous year.  

Producer prices rose 0.2% from the previous month, reversing a 0.2% decline in July. 

On a monthly basis, mineral oil products prices rose 6.9% in August. 

The U.K. jobless rate rose to 4.3% in the three months to July from 4.2% in the previous three months, the Office for National Statistics reported Tuesday. 

UK weekly average earnings excluding bonuses rose 7.8% from a year ago to £617 in the three months to July 2023, the Office for National Statistics reported Tuesday. 

The weekly average wage growth rose by the same amount as in the previous period, matching the highest regular annual growth rate since comparable records began in 2001. 

Finance and business services reported the largest increase of 9.5%, followed by the manufacturing sector  with 8.1%, one of the largest annual regular growth rates for the manufacturing sector since 2001.

 

Europe Indexes & Yields

The DAX index decreased 0.3% to 15,748.48, the CAC-40 index eased 0.1% to 7,270.28 and the FTSE 100 index inched up 0.6% to 7,540.95.

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

The yield on 10-year German bonds increased to 2.63%, French bonds traded lower to 3.17%, the UK gilts edged up to 4.43% and Italian bonds rose to 4.38%.

The euro edged lower to $1.071, the British pound to $1.246 and the U.S. dollar fetched 89.19 Swiss cents.

Brent crude decreased $0.71 to $91.35 a barrel and the Dutch TTF natural gas decreased €0.56 to €35.27 per MWh.

 

Europe Stock Movers

Smurfit Kappa Group Plc declined 9.7% to 2,772.0 pence after the packaging company announced a merger deal with the U.S. based WestRock. 

Vallourec SA increased 0.2% to €12.32 after the French geothermal company reiterated its operating earnings outlook for the full-year 2023.

SAP SE declined 2.9% to €125.20 after the U.S. rival Oracle reported weaker-than-expected software license and hardware revenue in the fiscal first quarter.   

Associated British Foods plc soared 7.0% to 2,141.04 pence after the company raised its full-year profit estimate for the second time in four months.