EU Passenger Car Sales Rebounds, UK Inflation Slows to 3-year Low

Bridgette Randall
22 May, 2024
Frankfurt

European markets headed lower amid ongoing rate uncertainty as investors reviewed the latest update on UK inflation. 

Benchmark indexes in Frankfurt, Paris, and London turned lower for the second day in a row and traded below record levels set in the previous week. 

 

UK Consumer Price Inflation Eases In April 

Consumer price inflation in the U.K. rose 2.3% in April, slower than 3.2% in March, the Office for National Statistics reported Wednesday. 

The annual inflation rate dropped to the lowest level since July 2021 after gas and electricity costs declined and recreation and culture costs rose at a slower pace. 

The core rate of inflation, which excludes food and energy prices, eased to 3.9% from 4.2% in March and dropped to the lowest level since October 2021. 

 

EU Car Registrations Rebound In April

The passenger car market in the European Union expanded by 13.7% in April, the European Automobile Manufacturers' Association reported on Wednesday. 

Vehicle sales rebounded from a 5.2% decline in March, following the strength in the four largest markets: Germany, France, Spain, and Italy. 

Sales rose in Spain by 23.1%, in Germany by 19.8%, in France by 10.9%, and in Italy by 7.7%. 

The increase in April's vehicle sales could be attributed to two more selling days compared to a year ago, when Easter holidays fell in April last year. 

Battery electric car sales in April rose 14.8% to 108,552 units and held its market share steady around 12%. 

Battery-powered vehicle sales in France soared 45.2%, in Belgium they advanced 41.6%, and in Germany they decreased 0.2%. 

Petrol car sales increased 7.3% to 328,967, and hybrid car sales surged 33.1% to 265,992. 

During the first four months of the year, new car registration in the European Union increased 6.6% to 3.7 million units, and battery-powered vehicle sales advanced 6.4% to 442,000. 

 

Europe Indexes and Yields

The DAX index decreased by 0.2% to 18,681.88; the CAC-40 index fell by 0.5% to 8,104.25; and the FTSE 100 index inched lower by 0.2% to 8,398.51. 

The yield on 10-year German bonds edged up to 2.53%; French bonds inched higher to 3.02%; the UK gilts edged higher to 4.23%; and Italian bonds inched higher to 3.83%.

The euro edged higher to $1.084; the British pound inched higher to $1.273; and the U.S. dollar gained to 91.35 Swiss cents.

Brent crude decreased $0.40 to $82.47 a barrel, and the Dutch TTF natural gas rose by €0.70 to €33.60 per MWh.

 

Europe Stock Movers

British Land Company advanced 1.7% to 401.59 pence and gained for the second day in a row after the real estate developer agreed to sell its stake in a shopping center located in Sheffield, UK. 

Marks & Spencer Group gained 6.6% to 290.40 pence, and the retailer said annual profit rose to a decade-high. 

Revenue in the fiscal year ending in March rose 9.3% to £13.0 billion from £11.9 billion, profit after tax increased to £425.2 million from £364.5 million, and basic earnings per share advanced 18.4% to 21.9 pence from 18.9 pence a year ago. 

The company announced its final dividend of 2 pence per share, payable on July 5, to shareholders on record on May 31. 

RS Group PLC gained 1.1% to 815.50 pence after the British industrial and electrical products maker reported underlying annual profit declined by 25%. 

Aalberts NV decreased 3.1% to €46.56 after the Dutch engineering company said revenue in the first four months fell 2.6% from a year ago. 

Organic revenue for the building technology segment fell 6.1% and the industrial technology segment rose 1.7%, and the company said the added value margin "remained on a good level."

In 2023, the company's revenue increased by 4.5% to €3.3 billion, and earnings per share before amortization were €3.38.

Billeurd AB added 1.2% to SEK 112.50 after the Swedish paper company said it no longer plans to convert its Escanaba, Michigan, paper mill to cardboard production and focus on packaging materials after eighteen months of deliberations.