European Markets Trimmed Weekly Losses; France and Germany Confirmed Weakening Inflation

Bridgette Randall
12 Apr, 2024
Frankfurt

European markets advanced in Friday's trading, bond yields declined, and the euro drifted lower. 

Benchmark indexes in Frankfurt, Paris, and London advanced after the final reading of the consumer price index confirmed the weakening trend in inflationary pressures. 

German consumer price inflation declined to an annual increase of 2.2% in March from 2.5% in February, Destatis said in its final report on Friday. 

France's consumer price inflation eased to an annual rise of 2.5% in March from 3.0% in February, INSEE confirmed in its final report on Friday. 

Both inflation reports matched previously announced estimates released by the statistical offices of Germany and France.     

Spain's consumer price inflation in March decreased to 3.2% after rising to 3.6% in February, the statistical agency INE reported Friday. 

Core inflation, which excludes volatile food and energy prices, eased to 3.3% from 3.5% in the previous month. 

The UK may have exited a recession after the latest monthly GDP data pointed towards a rebound in economic activity. 

The UK's real GDP increased monthly by 0.1% in February, following a revised 0.3% growth in January, the Office for National Statistics reported Friday. 

 

Europe Indexes and Yields

The DAX index increased by 0.9% to 18,109.54, the CAC-40 index rose by 0.9% to 8,096.40, and the FTSE 100 index inched higher by 1.2% to 8,022.34.

For the week, the DAX index decreased 0.7%, the CAC 40 index fell 0.1%, and the FTSE 100 index added 1.5%. 

The yield on 10-year German bonds edged down to 2.38%; French bonds inched higher to 2.87%; the UK gilts edged higher to 4.19%; and Italian bonds inched lower to 3.78%.

The euro edged higher to $1.065; the British pound inched higher to $1.245; and the U.S. dollar edged lower to 91.32 Swiss cents.

Brent crude decreased $1.04 to $90.78. a barrel, and the Dutch TTF natural gas rose by €0.57 to €30.09 per MWh.

 

Europe Stock Mover

Energy stocks advanced after Brent crude oil futures rose above $90 a barrel on speculation that Iran is likely to conduct a retaliatory strike following Israel's attack on its Syrian embassy. 

BP plc gained 2.4% to 534.60 pence, and Shell PLC advanced 1.9% to 2,912.86 pence. 

Mining companies rose after copper futures extended two-month gains and rose to a two-year high. 

Antofagasta jumped 4.3% to 2,314.0 pence, Glencore advanced 3.9% to 479.93, and Anglo American gained 4.1% to 2,211.0 pence. 

Societe Generale SA increased 4.8% to €26.43 a day after the company agreed to sell its equipment leasing and financing division to a private equity firm for €1.1 billion. 

Mercantile Investment Trust increased 0.9% to 224.50 pence after the company swung to an annual profit. 

ThyssenKrupp AG advanced 1.6% to €4.98, after the German steel company announced restructuring of its loss-making Duisburg steel division and significant production capacity cuts. 

The company announced its plans to cut annual steel production capacity to between 9.0 and 9.5 million tons from the current capacity of 11.5 million tons.