European Markets Struggled to Advance, Steady GDP Growth In Eurozone

Bridgette Randall
30 Jul, 2024
London

European markets were mixed as investors reviewed a slew of corporate results and key economic data and awaited monetary policy decisions from major central banks. 

Benchmark indexes in London, Paris, and Frankfurt traded around flatline ahead of the U.S. Federal Reserve's monetary policy decisions on Wednesday. 

The Euro Area gross domestic product expanded 0.3% on quarter in the second quarter, matching the rate in the first quarter, Eurostat reported Tuesday. 

On an annual basis, seasonally adjusted GDP in the second quarter rose by 0.6% and by 0.7% in the eurozone and European Union and accelerated from 0.5% and 0.6% in the first quarter, respectively. 

Seasonally adjusted GDP from a year ago contracted in Germany by 0.1%, rose by 2.9% in Spain, 1.1% in France, and expanded 0.9% in Italy. 

In a separate report released by the French statistical office INSEE, GDP in the second quarter rose 0.3% sequentially and matched the upwardly revised rate in the first quarter. 

Total production rebounded in the second quarter to 0.5% from a decline of 0.1%, and household consumption was stable after shrinking 0.1% in the previous quarter, respectively. 

 

Europe Indexes and Yields

The DAX index increased by 0.5% to 18,399.36; the CAC-40 index rose by 0.4% to 7,471.95; and the FTSE 100 index decreased by 0.1% to 8,282.93.

The yield on 10-year German bonds edged higher to 2.35%, French bonds inched higher to 3.06%, the UK gilts inched higher to 4.05%, and Italian bonds increased to 3.75%.

The euro edged lower to $1.08; the British pound inched lower to $1.284; and the U.S. dollar weakened to 88.59 Swiss cents.

Brent crude decreased $0.72 to $79.05 a barrel, and the Dutch TTF natural gas fell by €0.32 to €33.55 per MWh.

 

Europe Stock Movers

Standard Chartered Bank increased 6.2% to 771.60 pence after the Asia-focused financial services company reported stronger-than-expected second quarter results.

The bank also announced a $1.5 billion stock repurchase plan. 

BP plc rose 1.3% to 458.85 pence after the energy company reported better-than-expected second quarter profit. 

The company reiterated its plans to buyback its stocks and increase its dividend. 

Revenue in the second quarter declined to $48.2 billion from $49.9 billion, net income attributable to shareholders swung to a loss of $129 million from a profit of $1.8 billion, and diluted earnings per share were a loss of 0.78 cents compared to a profit of 10 cents. 

Diageo plc dropped 6.6% to 2,380.0 pence after the spirits and alcohol drink distributor reported lower-than-expected annual profit. 

Net sales declined 1.4% to $2.03 billion from $20.6 billion, net income attributable to shareholders fell to $3.9 billion from $4.4 billion, and basic earnings per share fell to $1.73 from $1.96 a year ago. 

Ocado Group declined 6.4% to 404.80 pence after the UK-based online supermarket and technology group extended its debt maturity to fund its growth plans.