Germany's Retail Sales Growth Accelerated In August, Norway's Consumer Inflation Rebounded to 3%

Bridgette Randall
10 Oct, 2024
London

European markets lacked momentum on Thursday as investors reassessed the future rate path amid elevated geopolitical tensions. 

Benchmark indexes in London, Paris, and Frankfurt struggled to rise above the flatline as investors worried that weak economic growth in the Euro Area could crimp corporate earnings in the second half. 

On the economic front, investors reviewed Germany's retail sales, Swedish GDP growth, and Norway's inflation data. 

 

Germany's Retail Sales Growth Accelerated In August 

Germany's retail sales in August accelerated to a monthly increase of 1.6% from 1.5% in July, the Federal Statistical Office, or Destatis, reported today. 

Monthly retail sales rose by the same amount in both real and nominal terms, adjusted for calendar and seasonal effects. 

Food sales increased 1.9% and nonfood sales rose 1.1%, and e-commerce and mail order sales advanced 8.9%. 

From a year ago, retail sales rose 2.1% after adjusting for inflation and increased 3.1% in nominal terms. 

The statistical office resumed reporting retail sales after suspending in June due to technology issues encountered during a conversion process while meeting new EU data requirements. 

Retail sales rebounded after falling monthly 1.4% in May and 1.1% in June. 

 

Norway's CPI Accelerated in September 

Norway's consumer price inflation increased 3% in September from 2.6% in August and rebounded to the highest pace since May, Statistics Norway reported Thursday. 

Consumer price inflation, adjusted for tax charges and energy prices, increased at a slower pace of 3.1% in September from 3.2% in August, dropping to the lowest level since August 2022. 

 

Sweden's GDP Expanded at the Fastest Pace in 13 months

Sweden's GDP growth in August rebounded to 1.1% from the downwardly revised 0.9% decline in August, Statistics Sweden reported Thursday. 

The monthly rate of increase in August was the strongest in 13 months, and faster household consumption and an increase in service sector activities were the key drivers. 

 

Europe Indexes and Yields

The DAX index increased by 0.01% to 19,255.54; the CAC-40 index fell by 0.2% to 7,545.81; and the FTSE 100 index declined by 0.3% to 8,219.22. 

The yield on 10-year German bonds edged higher to 2.27%, French bonds inched higher to 3.04%, the UK gilts edged up to 4.24%, and Italian bonds increased to 3.57%.

The euro edged lower to $1.09; the British pound inched higher to $1.31; and the U.S. dollar strengthened to 85.85 Swiss cents.

Brent crude decreased $1.02 to $77.58 a barrel, and the Dutch TTF natural gas rose by €0.87 to €39.35 per MWh. 

 

Europe Stock Movers

GSK plc increased 4.5% to 1,525.0 pence after the British drug maker agreed to settle 80,000 lawsuits in state courts in the U.S. related to Zantac. 

SCOR SE increased 3.2% to €20.60, and the French reinsurance company initiated a discussion to sell its stake in the ninth largest educational publishing company. 

SCOR entered into exclusive negotiations with Huyghens de Participations, the holding company of the Albin Michel group, for the sale of its stake in the capital of Humensis. 

Deutsche Telekom increased 1.5% to €27.16 after the German telephone company said it plans a stock buyback program in 2025. 

BMW decreased 0.2% to €76.60 after the German luxury automobile company reported sales in the third quarter declined, weighed down by the weakness in China. 

Unit sales across all models declined 13% from a year ago in the quarter, driven by a 30% plunge in China. 

Sales across battery-operated and hybrid vehicles stalled at 0.1% after rising at 40% in the corresponding period in 2023. 

Suedzucker AG declined 0.5% to €11.12 after the German company reported a decline in operating results in the second quarter amid high costs and low prices.