European Markets Halted 3-day Slide, EU Car Registration Eased In December

Bridgette Randall
18 Jan, 2024
Frankfurt

European markets traded higher after falling for three days in a row amid rising tensions in the Middle East and fading rate expectations.

Benchmark indexes in Paris, Frankfurt, and London advanced in Thursday's trading, and investors reviewed car registration data in the European Union and the eurozone current account surplus.

 

Eurozone Current Account Surplus Widens

The current account surplus in the Euro Area in November soared to Є31.7 billion from a revised Є6.6 billion a year ago, Eurostat reported Thursday.

The goods surplus rose to Є38.1 billion from Є7.5 billion, and the services surplus increased to Є12.6 billion from Є7.9 billion from a year ago, respectively.

For the January–November period, the currency union's surplus widened to ±225.8 billion from a deficit of ±90.2 billion in the same period in 2022.

 

EU Passenger Car Registration Rises In 2023

Passenger car registration in the European Union in December decreased for the first time after rising for 16 months in a row, the European Automobile Manufacturers Association reported Thursday.

December passenger car registration declined 3.3% to 867,052 units, driven by a 23% plunge in Germany.

However, registrations rose in France by 14.5% and in Spain by 10.6%.

For the 2023 full year, passenger car registration increased 13.9% to 10.5 million, driven by an increase in all EU markets except for a fall of 3.4% in Hungary.

Double-digit sales were recorded in most countries, including 18.9% in Italy, 16.7% in Spain, and 16.1% in France, the three largest markets in the Union.

Petrol cars retained their top spot with a 35.3% market share, followed by hybrid-electric cars with a share of 25.8% and battery-powered cars with 14.6%, surpassing diesel cars with 13.6%.

 

Europe Indexes and Yields

The DAX index increased 0.5% to 16,474.56, the CAC-40 index rose 0.5% to 7,354.37, and the FTSE 100 index decreased 0.05% to 7,441.98.

The yield on 10-year German bonds edged up to 2.28%; French bonds inched higher to 2.81%; the UK gilts edged higher to 3.94%; and Italian bonds increased to 3.90%.

The euro edged higher to $1.089, the British pound inched lower to $1.268, and the U.S. dollar eased to 86.44 Swiss cents.

Brent crude advanced $0.47 to $78.34 a barrel, and the Dutch TTF natural gas decreased by €0.72 to €28.46 per MWh.

 

Europe Stock Movers

Automakers were in focus after car registration in the European Union declined for the first time in December after rising for 16 months in a row.

Volkswagen Group increased 0.2% to €108.90, Mercedes-Benz Group gained 0.8% to €59.78, Renault gained 2.2% to €34.53, Peugeot Invest SA added 0.8% to €99.40, and Stellantis NV inched up 0.6% to €19.76.

Richemont soared 9.3% to CHF 115.20 after the Swiss luxury-goods company reported a rebound in sales in its fiscal third quarter.

Telefonica SA decreased 0.7% after the Spanish telecom company completed the sale of a green bond worth €1.75 billion.

J. Sainsbury plc added 0.5% to 286.70 pence after the company said it is exploring business alternatives for its financial service unit.

BHP Group decreased 0.6% to 2,369.85 pence after the company said it may write down assets in its nickel mining unit.

Kier Group advanced 7% to 120.0 pence after the construction company said performance in its first half of the fiscal year was better than in the comparable period in the previous year.

Watches of Switzerland Group plunged 31% to 399.40 pence after the UK-based retailer lowered its fiscal year 2024 guidance.