European Markets Rest After Mixed Earnings and Lackluster China Data

Bridgette Randall
18 Oct, 2024
London

European markets traded mixed a day after the European Central Bank lowered its key lending rates for the third time in 2024. 

Benchmark indexes in Paris, London, and Frankfurt traded around the flatline, and crude oil prices hovered near a two-week low. 

For the week, market indexes in London edged up 1.3%, in Paris rose 0.7%, and in Frankfurt advanced 0.9%. 

Investors were cautious after China reported lackluster economic data and persistent weakness in the housing market. 

China's third-quarter GDP expanded at an annual pace of 4.6%, faster than estimated, but economists warned that the world's second-largest economy is still likely to miss its annual growth target rate of 5%.

China's GDP growth slowed from 4.7% in the second quarter after consumer spending growth eased, according to the statistical agency. 

New home prices in September declined 6.1% from a year ago across 70 mainland cities, a larger than 5.7% fall in August. 

Home prices fell at the fastest pace since May 2015 and extended losses to the 16th consecutive month, according to the statistics bureau. 

Existing home prices fell on average 1.2% in September across the top-tier cities, faster than the 0.3% monthly decline in August.

Meanwhile, geopolitical tensions persist in the Middle East after Hamas leader Yahya Sinwar was killed by the Israeli army during an operation in Gaza. 

The killing of Sinwar is likely to escalate tensions in the region as Israel conducts its offensive in Lebanon and Gaza and prepares for a significant assault targeting Iranian oil infrastructure. 

Israel is widely expected to strike before November 5, ahead of the U.S. presidential election, despite the White House's attempts to prevent a wider war in the Middle East. 

 

Europe Indexes and Yields

The DAX index increased by 0.1% to 19,609.65; the CAC-40 index rose by 0.5% to 7,621.52; and the FTSE 100 index decreased by 0.3% to 8,363.31. 

The yield on 10-year German bonds edged lower to 2.19%, French bonds inched lower to 2.91%, the UK gilts edged up to 4.09%, and Italian bonds decreased to 3.37%.

The euro edged lower to $1.08; the British pound inched higher to $1.30; and the U.S. dollar strengthened to 86.61 Swiss cents.

Brent crude decreased $0.42 to $74.02 a barrel, and the Dutch TTF natural gas fell by €0.35 to €39.21 per MWh. 

 

Europe Stock Movers

EssilorLuxottica SA declined 0.1% to €215.70 after the eyewear company reported slightly weaker-than-expected quarterly results. 

Brunello Cucinelli jumped 4.8% to €97.75 after the fashion company reported a 12% increase in sales in its latest nine-month period. 

Luxury goods makers advanced after the Cucinelli's results, and Kering SA gained 5% to €242.80, Hermes International jumped 2% to €2,110.0, and LVMH gained 3% to €627.40. 

Oil exploration companies traded lower after crude oil prices hovered near a two-week low. 

BP plc jumped 0.9% to 403.65 pence, Shell PLC edged up 0.1% to 2,554.50 pence, and TotalEnergies SE gained 0.9% to €60.27.