European Markets Hovered Near Flatline, Eurozone Retail Sales Declined In June

Bridgette Randall
06 Aug, 2024
London

European markets struggled to advance following losses in the previous session amid rising Middle East tensions, lukewarm corporate earnings, and mounting concerns about the U.S. economic slowdown. 

Benchmark indexes in Paris, London, and Frankfurt traded around the flatline after investors reviewed eurozone retail sales and German factory orders. 

 

Eurozone Retail Sales Fall In June 

Retail sales in the eurozone decreased 0.3% on the month and on the year in June, Eurostat reported Tuesday. 

Retail sales declined on a monthly basis for the fourth time in the last seven months, and food, drink, and tobacco sales declined 0.7%, compared to a 1% rise.

Non-food product sales decline slowed to 0.1%, following a 0.3% decrease in the previous month. 

On the other hand, sales of auto fuel increased 0.5%, extending a 0.3% rise. 

 

German Factory Orders Rebounded in June 

German factory orders adjusted for season and calendar factors rebounded in June after falling in five previous months in a row, the Federal Statistics Office, or Destatis, reported Tuesday. 

Orders for manufactured goods were less volatile on a quarterly basis and decreased 1.4% in the second quarter ending in June from the previous quarter. 

Automotive orders increased 9.3%; orders for ships, trains, and aircraft soared 11.7%; however, orders for electronic and optical equipment declined 7.9% from the previous month. 

Orders for capital goods increased by 9.2%, but intermediate goods fell by 1.5%, and consumer goods dropped 7.1%.

Domestic orders rose 9.1% and foreign orders inched up 0.4%, with orders from the eurozone declining 0.3% and outside the currency union rising 0.9%. 

 

Europe Indexes and Yields

The DAX index increased by 0.1% to 17,362.15; the CAC-40 index fell by 0.2% to 7,134.50; and the FTSE 100 index declined by 0.4% to 7,976.06. 

European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions. 

The yield on 10-year German bonds edged higher to 2.17%, French bonds inched higher to 2.95%, the UK gilts inched higher to 3.90%, and Italian bonds increased to 3.66%.

The euro edged down to $1.09; the British pound inched lower to $1.269; and the U.S. dollar weakened to 85.40 Swiss cents.

Brent crude decreased $0.05 to $76.24 a barrel, and the Dutch TTF natural gas fell by €0.90 to €36.70 per MWh.

 

Europe Stock Movers

Abrdn jumped 2.2% to 165.76 pence after the UK-based asset management company reported better-than-expected first-half results. 

Adecco Group increased 1.1% to CHF 28.12 after the Swiss staffing company's second-quarter results surpassed market expectations. 

Monte dei Paschi di Siena soared 7.3% to €4.66 after the Italian bank raised its profit outlook.

SIG Group AG decreased 1.4% to CHF 17.09 after the Swiss construction material company reported a loss in the first half. 

Domino's Pizza decreased 6.5% to 288.80 pence after the pizza delivery company estimated its annual profit to hover near the lower end of market expectations.