European Stock Markets Advance to 3-week Highs and Bond Yields Decline

Bridgette Randall
12 Oct, 2023
Frankfurt

Stocks extended weekly gains and investors debated future direction and level of interest rates. 

Benchmark indexes in London, Paris and Frankfurt jumped more than 0.5% and investors reacted to corporate news as earnings season gathered pace. 

In economic news, the U.K. gross domestic product increased 0.2% in August from July, when the economy shrank revised 0.6%, the Office for National Statistics reported  Thursday. 

From a year ago, GDP advanced 0.5% after service sector expansion overwhelmed the decline in production and construction. 

In the three months to August, GDP increased 0.3% and manufacturing, services and construction showed growth.  

 

Europe Indexes & Yields

The DAX index increased 0.7% to 15,562.04, the CAC-40 index rose 0.6% to 7,175.02 and the FTSE 100 index advanced 0.8% to 7,678.89.

The yield on 10-year German bonds decreased to 2.72%, French bonds traded lower to 3.24%, the UK gilts edged up to 4.35% and Italian bonds rose to 4.66%.

The euro edged lower to a three-month low to $1.06, the British pound to $1.23 and the U.S. dollar fetched 89.97 Swiss cents.

Brent crude increased $1.16 to $86.98 a barrel and the Dutch TTF natural gas edged higher by €3.13 to €49.20 per MWh.

 

Europe Stock Movers

LM Ericsson Class B advanced 3.5% to skr 55.28 after the Swedish telecom company booked a $2.9 billion charge linked to its acquisition of Vonage in 2022. 

EasyJet plc decreased 5.2% to 414.0 pence despite the U.K.-based discount airline reporting record fiscal fourth quarter profit.

Givaudan SA increased 1.5% to CHF 2,937.0 despite the  Swiss fragrance company reporting a decline in sales in its latest quarter. 

Restaurant Group Plc soared 37.6% to 66.4 pence after the operator of pubs and restaurants agreed  to go private in a deal with Apollo Global Management. 

Suedzucker AG increased 1.4% to €14.30 after the world's largest sugar producer revised its annual earnings outlook.

The sugar and starch products maker said consolidated sales in the first-half ending in August rose 10% to €5.08 billion from €4.6 billion a year ago. 

Operating earnings in the first half increased to €739 million from €465 million a year ago. 

The company forecasted full-year revenue to range between €10.0 billion and €10.5 billion compared to €9.5 billion and operating earnings in the range of €1.3 billion to €1.4 billion compared to the previous estimate between €1.2 billion and €1.4 billion and €1.1 billion a year ago. 

Siemens Energy AG added 2.3% to €12.48 after the company agreed to sell its Trench business to an investment firm Triton as the company sharpened its focus on its core business. 

Publicis Groupe SA increased 4.8% to €76.84 after the public relations and advertising company reported an increase in revenue in the third quarter. 

Publicis revised higher its organic growth outlook for the full-year to range between 5.5% and 6% from the previous estimate of 5.0%.