Feeble Rebound In European Markets. Industrial Production Growth In Italy and Spain Diverge

Bridgette Randall
11 Jan, 2024
Frankfurt

Market indexes in Europe advanced after falling for two days in a row, and investors debated the path of interest rates and the economic outlook.

Market indexes in 2024 have been down between 1% and 2% in Frankfurt, Paris, and London, amid a cautious economic outlook and interest rate uncertainties.

Investors reviewed the latest update on industrial output in Italy and Spain and awaited the release of consumer price inflation in the U.S. later in the day.

Italy's industrial production decreased 1.5% from the previous month in November after falling 0.2% in October, the statistical agency ISTAT reported Thursday.

Industrial production dropped 3.1% from a year ago, the tenth monthly decline in a row.

Spain's industrial production increased by 0.8% from a year ago in November, the statistical agency INE reported Thursday.

On a seasonally adjusted basis, industrial production increased by 1% in November, rebounding from an upwardly revised 0.7% decline in the previous month.

 

Europe Indexes and Yields

The DAX index increased 0.4% to 16,753.17, the CAC-40 index rose 0.3% to 7,448.71, and the FTSE 100 index inched higher by 0.1% to 7,661.39.

The yield on 10-year German bonds edged down to 2.18%; French bonds inched lower to 2.71%; the UK gilts edged down to 3.78%; and Italian bonds decreased to 3.80%.

The euro edged higher to $1.096, the British pound inched higher to $1.274, and the U.S. dollar eased to 85.12 Swiss cents.

Brent crude decreased $1.09 to $77.91 a barrel, and the Dutch TTF natural gas decreased by €0.15 to €30.79 per MWh.

 

Europe Stock Movers

Mining companies advanced after copper prices rebounded in London trading following the decline in the U.S. dollar in the last three days.

Anglo American rose 2.5% to 1,868.0 pence, Antofagasta advanced 2.2% to 1,617.31 pence, and Glencore inched up 0.3% to 449.25 pence.

Informa PLC decreased 3% to 761.49 pence despite the education and trade show organizers reporting stronger-than-expected results.

The in-person event organizer estimated 2024 revenue between £3.425 billion and £3.475 billion and adjusted operating income in the range of £945 million and £965 million, or between $1.21 billion and $1.23 billion.

The company estimated 2023 revenue of £3.165 billion and adjusted operating income around £945 million.

The company confirmed an annual 18 pence per share dividend for 2023.

Marks & Spencer Group decreased 4.9% to 264.10 pence after the UK-based retailer reported strong holiday sales but warned of an uncertain sales outlook in the current year.

Vinci SA increased 0.07% to €115.16 after the French construction and engineering company reduced the size of its revolving credit line with a syndicate of 23 banks.

VAT Group AG rose 1.5% to CHF 406.50 after the Swiss industrial valve maker reported better-than-expected orders in the fourth quarter.

VAT recorded preliminary fourth-quarter orders of around CHF 237 million, down 5% from a year earlier but up 44% sequentially from the third quarter of 2023.

The rise in sequential orders showed improving market conditions in the semiconductor industry, but the company also won new orders in the advanced industrial business unit.

Preliminary fourth quarter net sales came in slightly above the mid-point of the guidance range of CHF 200 to 230 million provided in October 2023 and amounted to approximately CHF 221 million, down 24% from a year ago but up 6% from the previous quarter.