European Markets Extended 3-day Decline Ahead of ECB Rate Decisions

Bridgette Randall
17 Jul, 2024
London

European stock indexes declined for the third day in a row as investors reviewed the latest updates on inflation. 

Benchmark indexes in Paris, London, and Frankfurt decreased as investors awaited the monetary policy decisions from the European Central Bank later in the week. 

Consumer price inflation in the eurozone eased to 2.5% in June from 2.6% in May, according to the final estimate released by Eurostat on Wednesday. 

Inflation has cooled over the last year from 5.5%, largely because of the decline in energy prices. 

The UK's consumer price inflation held steady at 2.0% in June, matching the rate in the previous month, the Office for National Statistics reported on Wednesday. 

 

Europe Indexes and Yields

The DAX index decreased by 0.3% to 18,466.93; the CAC-40 index fell by 0.2% to 7,563.30; and the FTSE 100 index rose by 0.03% to 8,167.91. 

The yield on 10-year German bonds edged lower to 2.42%. French bonds inched lower to 3.09%; the UK gilts inched lower to 4.07%; and Italian bonds decreased to 3.70%.

The euro edged lower to $1.09; the British pound inched higher to $1.30; and the U.S. dollar weakened to 89.78 Swiss cents.

Brent crude increased $0.25 to $83.98 a barrel, and the Dutch TTF natural gas rose by €0.42 to €32.38 per MWh.

 

Europe Stock Movers

Antofagasta plc decreased 4% to 2,043.0 pence after the Chilean copper miner said annual production is to be near the bottom of the end of the company's guidance. 

Reckitt Benckiser Group increased by 0.2% 4,279.0 pence, and the company said its U.S. sales would be negatively impacted after a tornado struck a warehouse in Mount Vernon, Indiana. 

Demant AS dropped 112.5% to DKK 260.40 after the Danish hearing aid company issued a profit warning. 

Smiths Group decreased 0.8% to 1,739.0 pence, and the engineering company plans to sell 1.2 million shares in ICU Medical. 

ASML Holding decreased 7.7% to €901.60, and BE Semiconductor declined 2.9% to €162.65 on the worry of additional curbs on exports to China. 

Allianz SE rose 0.4% to €262.50, and the German insurance company said it acquired a majority stake in Singapore-based Income Insurance for $1.6 billion. 

Adidas AG rose 3.6% to €236.20, and the sportswear maker raised its annual outlook. 

The company said revenue in the second quarter increased 11% from a year ago.