Resource Stocks Lead Gainers as European Markets Rebound

Bridgette Randall
20 May, 2024
Frankfurt

In Monday's trading, indexes in Europe advanced after falling in the previous week as investors debated the timing and amount of future rate cuts. 

Benchmark indexes in Paris, London, and Frankfurt inched higher after resource stocks advanced in London, copper prices soared to a new record high, and crude oil prices turned volatile.

Crude oil prices edged slightly higher after Iran's state television confirmed the death of the president, Ebrahim Raisi, after the helicopter carrying the president, foreign minister, and a regional governor crashed while crossing mountainous climates, foggy weather, and icy conditions. 

In other international news, the People's Bank of China held its one-year and 5-year loan prime rates steady, removed the floor on mortgage rates, and lowered down payment requirements for first-time home buyers. 

 

Europe Indexes and Yields

The DAX index increased by 0.4% to 18,772.69; the CAC-40 index rose by 0.4% to 8,202.07; and the FTSE 100 index inched higher by 0.3% to 8,443.72. 

The yield on 10-year German bonds edged up to 2.51%; French bonds inched higher to 3.00%; the UK gilts edged higher to 4.13%; and Italian bonds inched higher to 3.81%.

The euro edged higher to $1.086; the British pound inched higher to $1.270; and the U.S. dollar gained to 90.88 Swiss cents.

Brent crude decreased $0.22 to $83.75 a barrel, and the Dutch TTF natural gas rose by €1.13 to €31.90 per MWh.

 

Europe Stock Movers

Keywords Studios PLC soared 62% to 2,382.90 pence after the Irish video game company said that it is in talks with European private equity company EQT Group for a possible cash offer of 2550 pence per share. 

Ryanair Holdings plc declined 1.3% to €19.05 after the discount airline reported a 34% increase in its annual profits but offered cautious views for the current year. 

British Land Company declined 0.8% to 400.0 pence after the real estate developer agreed to sell its stake in Meadowhall Shopping Center in Sheffield, UK, for £360 million to Norges Bank Investment Management. 

Resource stocks advanced after China announced supportive measures to revive property market transactions. 

Anglo American, Glencore, and Antofagasta advanced between 1% and 2% after copper futures rose to a record high of $5.15 per pound before stabilizing at $5.10.