Germany's Wholesale Price Deflation Deepens, France's Monthly CPI Falls the Most in Three Decades

Bridgette Randall
15 Oct, 2024
London

European markets struggled to hold gains after advancing the previous two sessions as investors reviewed the fresh batch of mixed economic data. 

Benchmark indexes in Paris, London, and Frankfurt traded around the flatline, and crude oil prices plunged as much as 5% in London trading. 

Industrial production in the Euro Area increased 1.8% from the previous month in August, according to a preliminary report from Eurostat. 

On an annual basis, production edged up only 0.1%, driven by a 4.8% decrease in durable consumer goods and a 2.7% fall in intermediate goods. 

France's consumer price inflation slowed slightly more than previously estimated in September, according to the statistical agency INSEE. 

Monthly consumer price inflation fell 1.2% in September after increasing 0.5% in the previous month, according to France's statistical agency INSEE. 

The monthly decline was the largest since the inflation series started in 1990, driven by a 13.5% decline in transportation prices and a 2.2% fall in the prices of services. 

On an annual basis, consumer price inflation slowed to an increase of 1.1% in September from a rise of 1.8% in the previous month. 

Core inflation, which excludes energy and food prices, also rose at a slower pace of 1.4% in September from a 1.7% increase in August. 

Germany's wholesale prices fell at the fastest pace in five months in September, according to a monthly report released by Destatis. 

The annual wholesale prices in September fell 1.6%, faster than the decline of 1.1% in August. 

The main driver of the decline in wholesale prices was the fall of 14.6% in mineral oil products, 5.8% decline in steel and semi-finished products, and 5.2% decrease in data processing equipment. 

 

Europe Indexes and Yields

The DAX index increased by 0.2% to 19,548.11; the CAC-40 index fell by 0.8% to 7,540.79; and the FTSE 100 index declined by 0.6% to 8,244.90. 

The yield on 10-year German bonds edged lower to 2.22%, French bonds inched lower to 2.97%, the UK gilts edged down to 4.19%, and Italian bonds decreased to 3.47%.

The euro edged lower to $1.09; the British pound inched higher to $1.30; and the U.S. dollar strengthened to 86.16 Swiss cents.

Brent crude decreased $3.84 to $73.62 a barrel, and the Dutch TTF natural gas fell by €1.34 to €39.21 per MWh. 

 

Europe Stock Movers

LM Ericsson soared 9.9% to SEK 86.10 after the Swedish telecom equipment maker said net income in the third quarter swung to a profit compared to a loss a year ago. 

Moreover, India-based Bharti Airtel also placed a multi-billion-dollar order for 5G wireless telecom equipment. 

Oil explorers declined after crude oil prices fell as much as 5% on a report that Israel is not targeting Iran's nuclear and oil infrastructure. 

Moreover, China's September imports rose only 0.6%, suggesting weak domestic demand. 

BP plc declined 4.7% to 389.0 pence, Shell PLC fell 3.7% to 2,494.88 pence, and TotalEnergies decreased 4.3% to €59.80. 

TotalEnergies said its downstream results are expected to decline sharply because of weak refining margins in Europe and other regions. 

Tele2 AB increased 1.2% to SEK 112.85, and the company appointed Jean-Marc Harion as president and chief executive officer as of November 10. 

Bellway PLC soared 6.6% to 3,256.0 pence after the UK-based home builder made positive comments about the domestic housing market recovery.