European Markets Register Solid Annual Gains In 2023

Bridgette Randall
29 Dec, 2023
Frankfurt

Market indexes across Europe advanced on the final day of trading in 2023.

Benchmark indexes in Frankfurt and Paris registered solid gains in 2023 on the hopes that major central banks in the U.S. and Europe are more likely to cut interest rates in 2024.

In thin trading, benchmark indexes advanced and extended weekly gains, led by a 0.4% rise in Frankfurt, a 0.3% gain in London, and a 0.02% increase in Paris.

In 2023, the DAX index gained 19%, the CAC-40 index jumped 14.6%, and the FTSE 100 index increased 2.5%.

On the economic front, Spain's overall consumer price index edged lower to 3.1% in December from 3.2% in the previous month, the National Statistics Institute reported Friday.

The core rate of inflation, which excludes food and energy prices, eased to 3.8% from 4.5% in the previous month and fell to the lowest level since March 2022.

 

Europe Indexes and Yields

The DAX index increased 0.3% to 16,747.17, the CAC-40 index advanced 0.3% to 7,558.56, and the FTSE 100 index inched higher by 0.2% to 7,734.97.

The yield on 10-year German bonds increased to 2.0%; French bonds inched higher to 2.62%; the UK gilts edged up to 3.57%; and Italian bonds advanced to 3.65%.

The euro edged lower to $1.10, the British pound inched lower to $1.27, and the U.S. dollar eased to 83.82 Swiss cents.

Brent crude increased $0.37 to $77.49 a barrel, and the Dutch TTF natural gas decreased by €0.15 to €32.95 per MWh.

 

Europe Stock Movers

Energy stocks advanced after crude oil prices rebounded in volatile trading.

Shell Plc, BP Plc, and TotalEnergies gained between 0.3% and 0.5%.

Banks traded mixed in the eurozone and in London.

UniCredit SpA and Deutsche Bank advanced 0.3%, but Societe Generale, Barclays, and Raiffeisen Bank declined between 0.2% and 0.4%, and UBS Group added 0.4%.

Automakers traded mixed, and investors debated how European automakers are likely to compete with rising global competition from leading Chinese electric vehicle makers.

China-based BYD is likely to lead global electric vehicle sales in 2024, surpassing the current leader, Tesla.

Volkswagen Group decreased 0.2%, Mercedes Benz Group added 0.6%, Renault SA declined 0.1%, Peugeot Invest dropped 0.4%, and Stellantis NV added 0.2%.