European Markets Rest, Spanish Producer Price Decline Accelerates

Bridgette Randall
25 Mar, 2024
Frankfurt

European markets traded mixed at the start of the holiday-shortened week amid ongoing trade tensions between the U.S. and China. 

Investors stayed on the sidelines after benchmark indexes traded at a new record high at the end of the previous week as rate-cut expectations drove market sentiment. 

Last week, major central bank announcements dominated market news after the U.S. Federal Reserve left its key lending rate range unrevised for the fifth time in a row and also maintained its possible three rate-cut projections for the year. 

Moreover, the Bank of Japan also ended its negative rate-cut regime after eight years and lifted its policy rate range for the first time in 17 years. 

Closer to home, the Bank of England and Norges Bank held their lending rates, but the Swiss National Bank cut its policy rate by 25 basis points to 1.5%. 

Spain's producer price inflation plunged 8.2% from a year ago in February, following a slightly revised 3.9% decline in the previous month, the National Statistics Institute reported Monday. 

Investors are also looking forward to the release of preliminary consumer inflation data in France, Spain, and Italy later in the week. 

 

Europe Indexes and Yields

The DAX index decreased by 0.02% to 18,203.33, the CAC-40 index rose by 0.4% to 8,120.95, and the FTSE 100 index inched lower by 0.4% to 7,897.72.

The yield on 10-year German bonds edged down to 2.34%; French bonds inched lower to 2.82%; the UK gilts edged higher to 4.0%; and Italian bonds inched higher to 3.67%.

The euro edged higher to $1.082, the British pound inched higher to $1.263, and the U.S. dollar held steady at 89.80 Swiss cents.

Brent crude decreased $0.45 to $85.90. a barrel, and the Dutch TTF natural gas rose by €0.98 to €28.76 per MWh.

 

Europe Stock Movers

Kingfisher plc edged up 0.2% to 234.16 pence after the UK-based home-improvement retailer reported a sharp decline in its fiscal year annual profit. 

Pre-tax profit in the fiscal year plunged 22.3% to £475 million from £611 million a year ago. 

Henry Boot dropped 1% to 182.11 pence after the UK-based property developer reported fiscal 2024 pre-tax profit decreased 18% to £37.3 million from £45.6 million. 

Delivery Hero SE declined 2.1% to €26.41 after the company said chief financial officer Emmanuel Thomassin would resign from his job at the end of September. 

The company's supervisory board is looking for a replacement. 

Pennon Group decreased 2.3% to 654.50 pence after the UK-based water utility company reported fiscal year results in line with management expectations. 

Gamma Communications PLC increased 0.1% to 1,350.80 pence after the company reported an increase in pre-tax annual profit. 

Direct Line Insurance dropped 12% to 183.47 pence after the Belgian insurance company Ageas said it would not make a third takeover offer.