European Indexes Drop 1% as Tensions Escalate In the Middle East

Bridgette Randall
16 Apr, 2024
Frankfurt

Stock market indexes in Europe declined more than 1% on the worry of escalating tensions between Israel and Iran. 

Benchmark indexes in Frankfurt, Paris, and London dropped more than 1% as Israel's kept its options open to conduct a retaliatory strike after Iran's first-ever direct attack on Israeli territory. 

Closer to home, on the economic front. Germany's wholesale inflation decreased 3.0% from a year ago in March, matching the rate in February, Destatis reported Tuesday.

The U.K.'s jobless rate increased to 4.2% in three months to February from 3.9% in the three months to January, the Office for National Statistics said in a report on Tuesday. 

   

Eurozone Trade Surplus Expanded After Energy Imports Contracted 

The eurozone goods trade surplus widened in February to €23.6 billion from €3.6 billion a year ago, Eurostat reported Tuesday. 

Exports increased by 0.3% to €235.0 billion due to higher shipments of raw materials, food, beverages, and miscellaneous manufactured products. 

Imports in the region declined by 8.4% to €211.4 billion, driven by a widespread decline in demand for raw materials, crude materials, manufactured items, machinery, and transport equipment. 

The goods trade surplus soared after energy imports declined sharply and the shipment of machinery and vehicles nearly doubled from a year ago. 

In February, the European Union's trade surplus with the U.S. increased to €15.0 billion from €13.0 billion and with the UK expanded to 14.9 billion from 11.6 billion a year ago, respectively. 

Trade deficits with China shrank to €20.5 billion from €22.5 billion and with Norway contracted to €4.2 billion from €5.0 billion a year ago, respectively. 

 

Europe Indexes and Yields

The DAX index decreased by 1.5% to 17,773.53, the CAC-40 index fell by 1.3% to 7,940.42, and the FTSE 100 index inched lower by 1.4% to 7,851.21.

The yield on 10-year German bonds edged up to 2.406; French bonds inched higher to 2.99%; the UK gilts edged higher to 4.28%; and Italian bonds inched lower to 3.88%.

The euro edged higher to $1.062; the British pound inched higher to $1.244; and the U.S. dollar edged higher to 91.30 Swiss cents.

Brent crude decreased $0.41 to $89.68. a barrel, and the Dutch TTF natural gas rose by €0.99 to €32.55 per MWh.

 

Europe Stock Movers

LM Ericsson rose 6.5% to SEK 57.22 after the telecom equipment company reported first-quarter operating profit increased 7% from a year ago to SEK 4.6 billion, excluding restructuring charges. 

Beiersdorf AG increased 1.6% to €134.50 after the German skincare company lifted its 2024 sales estimate. 

Superdry PLC plunged 33% to 5.33 pence after the struggling retailer said it plans to delist the company from the London Stock Exchange as a part of the company restructuring. 

Wise PLC declined 7.7% to 842.50 pence after the company's revenue in the fiscal fourth quarter fell short of market expectations. 

Dr. Martens plunged 33% to 63.69 pence after the shoemaker announced difficult market conditions in fiscal 2025 and the company said its chief executive Kenny Wilson has resigned. 

Vallourec SA decreased 1.6% to €17.68 after the steel tubular products maker launched a debt offering to raise $820 million in senior debt maturing in 2032.