European Indexes Struggled to Advance, Germany's Wholesale Price Decline Slowed In April

Bridgette Randall
28 May, 2024
Frankfurt

European market indexes struggled to rise above the flatline as investors awaited the release of inflation surveys in the eurozone and in the U.S. 

Benchmark indexes in Frankfurt, Paris, and London as investors reviewed the latest economic updates. 

The Euro Area consumer expectations' for the next 12 months eased to 2.9% in April from 3.0% in March, according to the survey from the European Central Bank released on Tuesday. 

Inflation expectations fell to their lowest level since September 2021. 

The U.K. shop price inflation slowed to an annual increase of 0.6% in May after an increase of 0.8% in April, the British Retail Consortium and the market research company NielsenIQ reported Tuesday. 

The shop price inflation rose at the slowest pace since November 2021. 

 

Germany's Wholesale Price Decline slowed In April

Germany's wholesale prices declined and slowed in April, according to the Federal Statistical Office, or Destastis. 

The wholesale price index decline slowed to an annual pace of 1.8% in April, after falling 2.7% in March and 2.6% in February. 

The latest wholesale price index is based on a new series that reflects the revised base rate for 2021 from 2015 and changes in baskets of goods and weights for individual items. 

On a monthly basis, wholesale prices rose 0.4% in April from the previous month.

The main reason for the overall decline in wholesale prices was the drop in prices in the wholesale trade in chemical products (17.9%), grain, raw tobacco, seeds, and animal feed (12.2%), ores, metals, and semi-finished metal products (7.2%), scrap and residues (6.8%), and milk, milk products, eggs, edible oils, and food fats (6.3%).

Meanwhile, wholesale prices for coffee, tea, cocoa, and spices rose (9.3%), sugar, confectionery, and baked goods (7.2%), and tobacco products (5.0%).

 

Europe Indexes and Yields

The DAX index increased by 0.1% to 18,800.32; the CAC-40 index fell by 0.4% to 8,099.12; and the FTSE 100 index decreased by 0.4% to 8,289.11. 

The yield on 10-year German bonds edged down to 2.56%; French bonds inched higher to 3.05%; the UK gilts edged lower to 4.23%; and Italian bonds inched higher to 3.87%.

The euro edged higher to $1.087; the British pound inched higher to $1.277; and the U.S. dollar gained to 91.06 Swiss cents.

Brent crude increased $0.47 to $83.35 a barrel, and the Dutch TTF natural gas rose by €0.42 to €34.50 per MWh.

 

Europe Stock Movers

Rheinmetall AG increased 0.3% to €533.80 after the German automotive and arms company won an order from a European government for the supply of 35 mm AHEAD ammunition for the Skynex air defense system. 

Cadeler AS decreased 1.7% to €5.80 after the offshore wind turbine installation vessel reported a loss in the first quarter. 

Revenue in the first quarter was €19 million, matching the level in the period a year ago, and operating income swung to a loss of €10 million compared to a gain of €8 million a year ago. 

The company reiterated its 2024 revenue to range between €225 million and €245 million and its operating income between €105 million and €125 million. 

The company's order book swelled to €1.8 billion. 

In addition, the company completed a successful private placement on February 15 and sold 39.5 million shares at a price of NOK 44.50 per share, raising €155 million before transaction costs.

Softcat PLC declined 0.9% to 1,700.0 pence despite the IT infrastructure company reiterating its full-year outlook. 

ThyssenKrupp AG rose 1.9% to €4.82 after the company's material services unit's chairman, Martin Stillger, decided to resign effective May 31. 

Intermediate Capital Group rose 2.7% to 2,382.0 pence after the private equity group reported record management fees and assets under management. 

Management fees in the financial year increased 5% to £505 million, and fund management profit before tax soared 21% to £375 million. 

Total fee earnings and assets under management rose 11% to £70 billion at the end of the financial year 2024. 

The company declared a total ordinary dividend of 79 pence per share, increasing its annual dividend for the 14th year in a row.