French and UK Jobless Rates Diverge In Q4, Swiss Inflation Eased In January

Bridgette Randall
13 Feb, 2024
Frankfurt

 European markets traded sideways as traders digested the latest economic data in the region and avoided taking positions ahead of the release of the U.S. inflation report later in the day. 

Benchmark indexes in Frankfurt, Paris, and London edged slightly lower after lackluster trading in the previous session. 

Investors are looking forward to the release of the U.S. consumer price inflation to slip below the 3% annual rate in January, easing pressure on the Federal Reserve to keep higher rates for longer. 

Investors reacted to corporate results from TUI, the hydrogen company ThyssenKrupp Nucera, and Siltronic. 

Closer to home, the French jobless rate held steady in the fourth quarter of 2023, and Swiss inflation eased in January. 

The jobless rate in the UK in the fourth quarter of 2023 decreased to 3.8% from 3.9% in the third quarter, according to the data released by the Office for National Statistics. 

A separate report by the agency showed UK regular wages rose 6.2% in the final quarter, the lowest increase in fourteen months. 

The higher-than-expected increase in regular wages also supported the advance in the pound, easing the pressure on the Bank of England to lower rates. 

 

French Jobless Rate Held Steady In Final Quarter of 2023

The French jobless rate held steady at 7.5% in the fourth quarter after rising in the previous two quarters in a row, the statistical office INSEE reported Tuesday. 

The jobless rate in the fourth quarter matched the rate in the third quarter but rose 0.4 percentage points in the final quarter of 2022, when the rate was the lowest since 1982 and significantly lower than the peak of 10.5% in mid-2015. 

The number of unemployed persons increased by 29,000 to 2.3 million, and the jobless rate 

Over the quarter, the youth unemployment rate decreased by 0.2 points for 15–24 year olds to 17.5%, increasing by 0.6 percentage points from the previous year. 

The unemployment rate for those between the ages of 25 and 49 increased by 0.2 points over the quarter, to 7.0%, and is 0.5 points above its level a year earlier. 

Finally, the jobless rate for those aged 50 or over was almost stable over the quarter at 5.0%.

The activity rate for those between 15 and 64 old increased by 0.4 percentage points from a year ago to 74.1%, the highest level since record-keeping began in 1975.    

 

Swiss Inflation Eased In January 

The Swiss inflation rate dropped to the lowest level in January since October 2021, after inflation for housing and utilities eased, the Swiss Federal Statistics Office reported Tuesday. 

Consumer price inflation eased to 1.3% in January from 1.7% in December, after housing and utility inflation decreased to 2.5% from 3.3% in the previous month. 

Food and non-alcoholic beverage inflation slowed to 2.3% from 3.3%, and restaurant and hotel price inflation slowed to 2.3% from 2.8%. 

The core rate of inflation, which excludes volatile food and energy prices, rose 1.2%. 

On a monthly basis, prices rose 0.2% in January from December, reflecting higher electricity and hotel prices. 

 

Europe Indexes and Yields

The DAX index decreased 0.6% to 16,928.84, the CAC-40 index fell 0.3% to 7,664.90, and the FTSE 100 index inched lower by 0.1% to 7,564.79.

The yield on 10-year German bonds edged down to 2.35%; French bonds inched higher to 2.85%; the UK gilts edged higher to 4.07%; and Italian bonds inched higher to 3.90%.

The euro edged lower to $1.076, the British pound inched higher to $1.264, and the U.S. dollar gained to 88.15 Swiss cents.

Brent crude increased $0.64 to $82.66 a barrel, and the Dutch TTF natural gas advanced by €0.30 to €26.03 per MWh.

 

Europe Stock Movers

TUI AG increased 2.7% to €7.03 after the tour operator reported a narrower loss in the fiscal first quarter and the company reiterated its annual outlook. 

Higher demand for tour packages and improved prices and rates also helped the company cut its losses. 

Thyssenkrupp Nucera increased 5.9% to €15.82 after the hydrogen company said its fiscal first quarter revenue increased by more than a third because of the rising demand for its electrolyser technology. 

Randstad NV added 1.3% to €53.96 after the Dutch staffing company said it plans to return €632 million to shareholders and meet its capital allocation plan.