European Indexes Decline from Record Highs, Spain's Retail Trade Expanded

Bridgette Randall
11 Mar, 2024
Frankfurt

European market indexes declined from record highs after investors booked profits and reviewed the latest rate announcements last week. 

Benchmark indexes in Frankfurt, Paris, and London inched lower in Monday's trading, and bond yields also drifted lower. 

Central banks in the U.S. and Eurozone led investors to believe that interest rates are near their peak in the current cycle and raised hopes for rate cuts to begin as early as June. 

Last week, the European Central Bank also held its key lending rates steady for the fourth consecutive time in a row, and ECB President Lagarde confirmed that the market’s view of rate cuts in three months is converging with the view of policymakers.

Moreover, last week's latest batch of economic reports showed Germany's exports rose more than expected and the trade surplus widened in January, but France's trade balance remained in deficit because of high energy prices. 

Spain's retail trade activity increased by 0.3% in January, following the downwardly revised 2.7% rise in the previous month, the National Statistics Institute reported Monday. 

Retail sales rose for the fourteenth month in a row, but the rise was the smallest in the period. 

 

Europe Indexes and Yields

The DAX index decreased by 0.7% to 17,686.07, the CAC-40 index fell by 0.4% to 7,999.17, and the FTSE 100 index inched lower by 0.3% to 7,637.33.

The yield on 10-year German bonds edged down to 2.26%; French bonds inched lower to 2.71%; the UK gilts edged lower to 3.95%; and Italian bonds inched lower to 3.59%.

The euro edged higher to $1.09, the British pound inched higher to $1.28, and the U.S. dollar weakened to 87.67 Swiss cents.

Brent crude increased $0.29 to $82.39 a barrel, and the Dutch TTF natural gas decreased by €0.96 to €25.43 per MWh.

 

Europe Stock Movers

Metals and mining companies fell after cautious comments from the Chinese minister. 

China's housing minister said on Monday that the government is prepared to let some property developers go bankrupt if they are deemed to be financially unviable. 

Anglo American declined 2.1% to 1,811.60 pence, and Glencore fell 2.2% to 391.70 pence after copper and iron ore prices eased on China's growth worries. 

Currys PLC dropped 8.7% to 59.15 pence after U.S.-based activist investment manager Elliott Investment Management said it no longer plans to make a bid for the electronics retailer. 

Marston's PLC decreased 1.1% to 29.50 pence after the UK-based pub's chairman confirmed his plans to step down from the company's board later in the year.

Imperial Brands rose 2.1% to 1,728.0 pence after the company announced a stock repurchase plan of £11 billion.

HelloFresh advanced 3.7% to €7.11 after the German meal-kit company's stock plunged 40% last week following the company's weak outlook. 

Enel SpA rose 0.6% to €6.16 after the Italian energy company's subsidiary E-distribuzione announced its plans to sell some of its distribution activities for €1.2 billion to Italian regional utility A2A. 

LEG Immobilien gained 3.7% to €74.62 after the property company reported better-than-expected quarterly results. 

EssilorLuxttica decreased 2.1% to €204.45, and the Financial Times said that the company was one of the top contenders to acquire Italian eyewear maker Marcolin.