European Indexes Wavered as Crude Oil Jumped 3%, Eurozone Jobless Rate Held Steady at Record Low

Bridgette Randall
02 Oct, 2024
London

European markets struggled to stay above the flatline amid growing fears of a wider war in the Middle East, which potentially could disrupt crude oil supplies and international goods trade. 

Crude oil surged more than 3% in New York and London trading after Iran launched ballistic missiles targeting Israel while the Israeli military entered southern Lebanon. 

Benchmark indexes in Paris, London, and Frankfurt traded in a tight range, and investors reviewed the latest update on the labor market in the Euro Area. 

 

Eurozone Jobless Rate Held Steady In August 

The jobless rate in the Euro Area held steady at 6.4% in August, according to a Eurostat report released on Wednesday. 

The unemployment rate stayed at record lows and stayed resilient despite an elevated interest rate and weakening manufacturing sector activities. 

The jobless count increased by 94,000 from the previous month to 10.925 million, and the unemployment rate among those younger than 25 years of age and seeking jobs eased to 14.1%. 

Geographically, Spain led with a jobless rate of 11.3%, followed by Greece with 9.5% and Sweden with 8.4%.

On the other hand, the jobless rate was the lowest in Poland with 2.9%, Malta with 3%, Slovenia with 3.3%, and Germany with 3.5%. 

 

Spain's August Jobless Count Dropped to the Lowest Since 2007 

The number of people registered as jobless increased by 3,146 to 2.575 million in September, the ministry of employment and social security reported Tuesday. 

Unemployment among those younger than 25 increased by 15,027 to 192,139 in the month. 

The overall number of unemployed and those younger than 25 were lowest in the month since 2007. 

 

Europe Indexes and Yields

The DAX index decreased by 0.4% to 19,140.96; the CAC-40 index rose by 0.1% to 7,580.34; and the FTSE 100 index rose by 0.2% to 8,292.31. 

The yield on 10-year German bonds edged higher to 2.08%, French bonds inched higher to 2.86%, the UK gilts edged up to 4.02%, and Italian bonds increased to 3.42%.

The euro edged lower to $1.10; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.80 Swiss cents.

Brent crude decreased $2.20 to $75.76 a barrel, and the Dutch TTF natural gas fell by €0.11 to €39.13 per MWh. 

 

Europe Stock Movers

Energy stocks advanced in London following the rise in crude oil prices for the second week in a row amid rising tensions in the Middle East. 

Separately, American Petroleum Institute data showed that the U.S. crude oil inventories declined by 1.5 million barrels last week, the second weekly decline in a row. 

BP plc increased 2.4% to 410.60 pence, Shell PLC jumped 2.3% to 2,536.50 pence, and TotalEnergies SE advanced 2.7% to €60.91. 

TotalEnergies announced an investment of $10.5 billion in the GranMorgu offshore oil exploration block in the Republic of Suriname. 

GEA Group AG increased 2.4% to €45.08, and the German technology and system provider for the food processing industry said it achieved its mid-term financial goals two years ahead of schedule. 

Wizz Air Holdings dropped 6% to 1,285.0 pence in London trading after discount airline operator said load factor in September dropped. 

JD Sports Fashion PLC dropped 5.3% to 141.70 pence despite the retailer reporting record sales in 26 weeks to August and reiterating its annual outlook.