European Markets Approached 4-month highs, French Industrial Production Eased

Bridgette Randall
05 Dec, 2023
Frankfurt

European markets inched to a four-month high, and investors debated the rate path and the economic health of the eurozone.

Benchmark indexes in Frankfurt and Paris advanced to a four-month high amid mixed worries about the European Central Bank's next move, energy price-driven inflation, and consumer spending.

On Monday. Germany reported a larger-than-expected trade surplus, and today France reported industrial production declining for the third month in a row.

 

French Industrial Production Eased In October 

France's industrial production fell 0.3% in October from the previous month's upwardly revised 0.6% decline in September, the INSEE, the statistical office of France, reported Tuesday.

The weakness in mining, energy, and construction sector activities offset the slight rebound in manufacturing activities.

A year ago, industrial production rose 1.9% in October after falling 0.3% in September.

In other economic news, service sector activities in Spain and Italy shrank in October, two separate reports from S&P Global showed Tuesday.

The HCOB Italy Service PMI decreased to 49.5 in November, a decline for the fourth month in a row, but rose from a one-year low of 47.7 in October.

The HCOB Spain Service PMI eased to a three-month low of 49.8 in November from 50.0 in October.

 

Europe Indexes and Yields

The DAX index increased 0.3% to 16,446.07, the CAC-40 index rose 0.4% to 7,359.99, and the FTSE 100 index decreased 0.3% to 7,490.18.

The yield on 10-year German bonds decreased to 2.30%; French bonds traded lower to 2.86%; the UK gilts declined to 4.14%; and Italian bonds inched lower to 4.04%.

The euro traded lower to $1.083, the British pound inched lower to $1.263, and the U.S. dollar eased to 87.39 Swiss cents.

Brent crude increased $0.45 to $78.45 a barrel, and the Dutch TTF natural gas decreased by €0.23 to €49.88 per MWh.

 

Europe Stock Movers

Nokia declined 8.8% to €2.75 after AT&T said it plans to use telecom technology developed by Ericsson, which relies on cloud computing and non-proprietary off-shelf equipment developed by other companies.

Ericsson increased 4.9% to kr56.97.

AT&T said its telecom network equipment spending could reach as much as $14 billion over the next five years.