Germany's Trade Surplus Soared In April, UK Home Prices Accelerated In May

Bridgette Randall
07 Jun, 2024
Frankfurt

A day after the European Central Bank delivered its first rate cut for its three policy rates in eight years, market indexes turned lower on the uncertainty of future rate cuts. 

Benchmark indexes in Paris, Frankfurt, and London declined after investors digested a flood of economic data. 

Germany's trade surplus soared from a year ago in April after exports increased and imports declined, while France's trade deficit increased after imports rose faster than exports, two separate reports showed. 

France's trade deficit in April increased to Є7.6 billion from Є5.4 billion in March, but was lower than Є9.9 billion a year ago, the statistical agency INSEE reported Friday. 

Germany's industrial production dropped at a slower pace in April, Destatis reported Friday. 

 

Germany's Goods Trade Surplus Soared In April

Germany's goods exports rose 1.6% from a year ago to Є136.5 billion, imports declined 0.6% to Є114.5 billion, and trade surplus soared to Є22.1 billion from Є18.7 billion a year ago. 

Exports to the member states of the European Union increased to Є74.1 billion, and Є62.4 billion were exported to countries outside of the EU. 

Imports from the member states of the European Union were 61.3 billion, and 53.2 billion were imported from the rest of the world. 

Exports to the U.S. decreased 1.2% from the previous month to Є14.2 billion, to China increased 0.8% to Є12.8 billion, and to the U.K. rose 15.4% to Є7.4 billion. 

Most imports to Germany originated from China, the U.S., and the U.K. 

Imports from the People's Republic of China decreased 7.8% to Є12.8 billion, from the U.S. fell 1.0% to Є7.5 billion, and from the U.K. increased 8.8% to Є3.0 billion. 

In 2024, China replaced the U.S. as Germany's largest trading partner. 

 

UK Home Price Growth Accelerated In May

The UK home growth increase accelerated for the second month in a row in May, Halifax said in its latest report. 

The Halifax House Price Index increased 1.5% from a year ago in May, after rising 1.1% in April, and advanced for the sixth month in a row. 

The average property price in the U.K. edged slightly lower to £288,688 compared to £288,862 in April and £287,477 a year ago. 

“Market activity remained resilient throughout the spring months, supported by strong nominal wage growth and some evidence of an improvement in confidence about the economic outlook. 

This has been reflected in a broadly stable picture in terms of property price movements, with the average cost of a property little changing over the last three months," said Amanda Bryden, Head of Mortgages, Halifax. 

 

Europe Indexes and Yields

The DAX index decreased by 0.8% to 18,498.81; the CAC-40 index fell by 0.7% to 7,983.86; and the FTSE 100 index declined by 0.5% to 8,241.45. 

The yield on 10-year German bonds edged higher to 2.57%. French bonds inched higher to 3.07%; the UK gilts edged higher to 4.19%; and Italian bonds inched lower to 3.91%.

The euro edged higher to $1.089; the British pound inched higher to $1.279; and the U.S. dollar weakened to 88.95 Swiss cents.

Brent crude increased $0.27 to $80.14 a barrel, and the Dutch TTF natural gas rose by €0.10 to €33.24 per MWh.

 

Europe Stock Movers

Temenos AG rallied 2.7% to CHF 60.0 after the Swiss software company announced a stock repurchase plan. 

C&C Group declined 7.5% to 157.28 pence, and the company said its chief executive officer resigned from the company following the discovery of accounting errors. 

Rexel SA decreased 0.5% to €26.95 after the distributor of electrical and ventilation products released its financial objectives ahead of its meeting with investors in Paris. 

Bellway plc gained 1.7% to 2,828.0 pence after the home builder lifted its annual average selling price forecast. 

Mining stocks continued to slide for the second consecutive week after China's import growth slowed to 1.8% in May. 

Anglo American fell 0.9% to 2,391.0 pence, Glencore fell 1.7% to 469.20 pence, and Antofagasta dropped 2.4% to 2,161.0 pence.