European Markets Trim Weekly Gains, France's Fiscal 2025 Budget Targets 5% Deficit

Bridgette Randall
11 Oct, 2024
London

European markets lacked direction in Friday's trading as investors reviewed the region's economic data and looked forward to China's finance minister's press briefing on Saturday. 

Benchmark indexes in Paris, Milan, Frankfurt, and London struggled to advance, and the euro edged slightly lower. 

France's prime minister, Michele Barnier, proposed a fiscal budge with the aim of lowering the budget deficit to 5% of gross domestic product, still higher than the 3% limit set by the European Union. 

The proposed budget includes spending cuts of Є41.3 billion and tax increases of Є19.3 billion targeting ultra-wealthy individuals and large businesses. 

Budget is expected to face tough resistance in the fragmented legislative assembly, but France has little choice and must find ways to bring down its large and growing budget deficit if it wants to avoid restrictions from the European Union. 

In other economic news, Germany's consumer price inflation slowed to 1.6% in September from 1.9% in August. the Federal Statistical Office confirmed in a report today. 

The preliminary estimate was released on September 30. 

 

Europe Indexes and Yields

The DAX index increased by 0.1% to 19,229.95; the CAC-40 index rose by 0.1% to 7,545.45; and the FTSE 100 index declined by 0.2% to 8,224.35. 

For the week, the DAX index increased 1%, the CAC-40 index added 0.4%, and the FTSE 100 index decreased 0.6%. 

The yield on 10-year German bonds edged higher to 2.29%, French bonds inched higher to 3.07%, the UK gilts edged up to 4.25%, and Italian bonds increased to 3.56%.

The euro edged lower to $1.09; the British pound inched higher to $1.30; and the U.S. dollar strengthened to 85.79 Swiss cents.

Brent crude decreased $0.67 to $78.72 a barrel, and the Dutch TTF natural gas rose by €0.12 to €40.21 per MWh. 

 

Europe Stock Movers

Stellantis NV declined 3.7% to €11.73, and the Italian vehicle maker said chief executive Carlos Tavares retired in 2026 after the company announced a management shakeup. 

The automotive global conglomerate also announced new leaders for its Maserati, Alfa Romeo, and Jeep brands. 

Doug Ostermann will replace Natalie Knight as the new chief financial officer as the company struggles amid falling sales in China and intensifying competition in Europe. 

Late September, the company's management lowered its current year annual profit outlook and added its operating cash flow is going to be negative. 

Porsche Automobil SE edged down 0.1% to €39.84 after the German sports vehicle maker reported weak vehicle sales in the nine months of fiscal 2024. 

BP plc declined 0.1% to 410.60 pence, and the energy giant confirmed in its trading statement that weak refining margins and volatile trading are going to negatively impact its earnings. 

Hays plc rose 0.8% to 86.45 pence despite the recruiting company reporting a sequential decline in its first-half operating profit. 

Zalando SE increased 0.1% to €29.84 after the German online retailer lifted its fiscal year outlook.