German Inflation Softened In August, UK Jobless Rate Eased to 4.1%

Bridgette Randall
10 Sep, 2024
Mexico City

European markets lacked direction and attempted to rebound for the second session in a row after falling in the previous five sessions. 

Benchmark indexes in Paris, London, and Frankfurt traded in a tight range around the flatline as investors reviewed the latest update on inflation in Germany and the labor market in the U.K. 

German inflation softened to 1.9% in August from 2.3% in July, according to final data released by the Federal Statistical Office, or Destatis, on Tuesday. 

The final estimate matched the preliminary estimate released by the statistical agency, confirming the weakening price trend largely driven by falling energy prices. 

The British pound strengthened against the U.S. dollar and the euro after wage growth and jobless rate updates matched market expectations. 

The unemployment rate dropped to 4.1% in the three-month period to July from 4.2% in the previous three-month period ending in June, the Office for National Statistics reported Tuesday. 

In addition, regular pay, which excludes bonuses, increased at a slower pace of 5.1% from 5.4% in the previous three-month period ending in June. 

Spain's industrial output fell by 0.4% from a year ago in July following a downwardly revised 0.2% increase in the previous month, the National Statistics Institute reported Tuesday. 

A decline in capital goods overshadowed the increase in intermediate goods, energy, and consumer goods. 

Industrial output fell for the first time after inching slightly higher in the previous two consecutive months and struggling since August 2023. 

 

Europe Indexes and Yields

The DAX index decreased by 0.3% to 18,397.50; the CAC-40 index rose by 0.3% to 7,446.79; and the FTSE 100 index fell by 0.5% to 8,226.27. 

The yield on 10-year German bonds edged lower to 2.17%, French bonds inched lower to 2.89%, the UK gilts edged down to 3.87%, and Italian bonds increased to 3.54%.

The euro edged down to $1.10; the British pound inched higher to $1.30; and the U.S. dollar weakened to 84.76 Swiss cents.

Brent crude decreased $0.69 to $71.47 a barrel, and the Dutch TTF natural gas rose by €0.63 to €36.57 per MWh. 

 

Europe Stock Movers

Centamin PLC soared 23.9% to 148.10 pence after AngloAshanti offered to acquire the gold miner for $2.5 billion, or 44.6 billion rands. 

AstraZeneca declined 3.9% to 12,214.0 pence after its lung cancer showed mixed results in a late-stage trial. 

Gamma Communications PLC increased 9.5% to 1,644.52 pence after communication company reported acquisitions supported the increase in revenue and earnings in the first half. 

Capgemini SE advanced 6.5% to €192.25 after Oracle reported better-than-expected revenue and earnings in its latest quarter. 

Amplifon dropped 4.8% to €26.64 after Apple announced its latest AirPods will have integrated hearing aids.