European Markets Edge Higher After Middle East Tensions Ease and Crude Oil Prices Turn Lower

Bridgette Randall
22 Apr, 2024
Frankfurt

European market indexes advanced after a week of choppy trading as geopolitical tensions eased and crude prices descended from five-month highs. 

Benchmark indexes in Frankfurt, Paris, and London rebounded after declining for three weeks in a row as investors prepare to review earnings from leading global tech companies and European banks. 

Tensions between Iran and Israel eased for now after two countries carried out limited strikes and avoided escalating tensions following intense diplomatic efforts by the U.S., Oman, Switzerland, and France. 

Crude oil futures prices edged lower after tensions eased in the Middle East and U.S. crude oil inventories rose more than expected, easing global demand growth. 

 

Europe Indexes and Yields

The DAX index increased by 0.4% to 17,814.66; the CAC-40 index rose by 0.2% to 8,037.43; and the FTSE 100 index inched higher by 0.6% to 8,007.47.

The yield on 10-year German bonds edged up to 2.53%; French bonds inched higher to 3.03%; the UK gilts edged higher to 4.24%; and Italian bonds inched higher to 3.90%.

The euro edged higher to $1.065; the British pound inched higher to $1.234; and the U.S. dollar edged higher to 91.11 Swiss cents.

Brent crude decreased $0.35 to $86.73 a barrel, and the Dutch TTF natural gas fell by €0.85 to €29.92 per MWh.

 

Europe Stock Movers

Tyman soared 31% to 388.50 pence after the U.K.-based doors and windows supplier agreed to be acquired by the U.S.-based metal windows maker Quanex for about £788 million in cash and stock. 

Alstom SA jumped 0.5% to €15.19 after the French train maker agreed to sell its North American rail conventional signaling business to Knorr-Bremse for €630 million. 

Hipgnosis Song Fund soared 10% to 101.0 pence after alternative asset manager Blackstone offered to buy the troubled music rights investor for $1.5 billion. 

Galp Energia rose 16% to €18.67, and the Portuguese oil company said the Mopane oil field off the coast of Namibia could have at least 10 billion barrels of oil. 

Tesco PLC increased 2.8% to 289.20 pence after the UK-based grocery retailer commenced its first tranche of its £1 billion stock repurchase program.