European Investors Look Ahead to Inflation Data, Alstom Launches Rights Issue

Bridgette Randall
27 May, 2024
Frankfurt

In thin trading, stocks edged slightly higher in Europe, and investors awaited the release of economic data later in the week. 

Investors are looking forward to the release of consumer price inflation reports in the eurozone. Annual inflation is expected to rise to 2.5% in May, and core inflation is estimated to hold steady at 2.7%. 

Investors are looking forward to the release of France’s jobless data and Switzerland’s foreign trade balances later in the week. 

Benchmark indexes in Paris and London inched higher, and markets in the U.S. and the U.K. are closed for public holidays. 

Eurozone inflation data later in the week could provide more insight into the inflation forces. Inflation has dropped over the last 12 months, but prices are still rising faster than the 2% target rate set by the European Central Bank, despite multiple rate hikes. 

The German business climate index was unchanged in May, according to the report released by the Ifo Institute on Monday. 

The business climate index was unchanged at 89.3 in May compared to a downwardly revised level in April. 

 

Europe Indexes and Yields

The DAX index increased by 0.3% to 18,705.11; the CAC-40 index rose by 0.1% to 8,104.94; and the UK financial markets are closed for a holiday. 

The yield on 10-year German bonds edged down to 2.56%; French bonds inched higher to 3.04%; the UK gilts edged higher to 4.26%; and Italian bonds inched lower to 3.86%.

The euro edged higher to $1.085; the British pound inched higher to $1.276; and the U.S. dollar gained to 91.39 Swiss cents.

Brent crude increased $0.57 to $82.68 a barrel, and the Dutch TTF natural gas rose by €0.78 to €34.74 per MWh.

 

Europe Stock Movers

Alstom SA rose 4.4% to €19.52 after the French transportation company launched a preferential rights issue of €1 billion, taking the final step of completing its plan to lower its debt by €2 billion. 

EFG International soared 2.6% to CHF 12.56 on speculation that the Swiss rival Julius Baer Group Ltd. is looking to acquire the company. 

PF Bakkafrost declined 1.9% to NOK 591.0 after the Norwegian salmon farming company confirmed that infectious salmon anaemia had been found at two Bakkafrost pens at a site in the Faroe Islands. 

SBB gained 2% to SEK4.61 after the Swedish bank struck a joint venture with the U.S.-based Castlelake. 

Castlelake agreed to provide a loan of €464 million, or SEK 5.2 billion, to the joint venture SBB Infrastructure AB to acquire properties from SBB and refinance debt. 

The joint venture agreed to provide collateral totaling SEK 9.4 billion for properties in Sweden and Finland.