European Market Indexes Flatlined In Cautious Trading

Bridgette Randall
23 Jul, 2024
London

European market indexes traded mixed, and tech stock gains were overshadowed by a weakness in resource stocks. 

Benchmark indexes in Paris, London, and Frankfurt flatlined, and the euro and the pound held firm. 

Tech stocks advanced after SAP and Logitech reported better-than-expected quarterly results, but mining stocks edged lower on demand growth worries in China. 

The price of copper fell to a three-month low following China's lack of major economic reform announced at the end of the Third Plenum last week. 

Moreover, luxury stocks in Paris also faced a sharp fall for the second week due to persistent demand growth worries in mainland China and Hong Kong. 

However, market sentiment recovered slightly after U.S. President Joe Biden announced his plan to exit the presidential race and endorsed the nomination of Vice President Kamala Harris as a Democratic Party candidate. 

Harris is more likely to continue the current policy of supporting NATO spending targets and support the efforts in defending the Ukraine war, unlike Republican Party candidate Donald Trump's plan to end financial support. 

 

Europe Indexes and Yields

The DAX index increased by 1.1% to 18,623.06; the CAC-40 index rose by 0.04% to 7,622.61; and the FTSE 100 index fell by 0.2% to 8,184.82.

The yield on 10-year German bonds edged lower to 2.45%, French bonds inched lower to 3.10%, the UK gilts inched higher to 4.14%, and Italian bonds decreased to 3.75%.

The euro edged lower to $1.09; the British pound inched higher to $1.29; and the U.S. dollar weakened to 89.19 Swiss cents.

Brent crude decreased $0.53 to $81.81 a barrel, and the Dutch TTF natural gas fell by €0.57 to €31.30 per MWh.

 

Europe Stock Movers

SAP SE jumped 6.5% to €195.20 after the German software company reported better-than-expected second-quarter results. 

Logitech SA increased 1.3% to CHF 83.14 after the Swiss computer accessories maker lifted its annual sales and earnings outlook. 

Porsche Automobil declined 2.9% to €41.44 after the luxury vehicle maker cut its annual sales outlook and warned of possible impairment charges linked to supply chain disruptions. 

Thales SA declined 5.4% to €145.95, despite the France-based largest European defense electronics company reporting slightly better-than-expected operating profit in the first half. 

Alfa Laval rose 0.2% to SEK 467.80 after the Swedish thermal equipment and plant maker reported an increase in sales and earnings in the second quarter. 

Compass Group jumped 4.7% after the airline catering company revised its full-year revenue and earnings outlook.