European Markets Hover Near Record Highs In Cautious Trading, Germany's Producer Price Deflation Extends to 15th Month

Bridgette Randall
21 Oct, 2024
London

European markets struggled to rise above the flatline after advancing in the previous two consecutive weeks. 

Benchmark indexes in Paris, London, and Frankfurt lacked direction amid elevated tensions in the Middle East and election uncertainty in the U.S. and Japan. 

On the economic front, investors are looking forward to the release of business surveys in France and Germany and producer price inflation data in Spain. 

Germany's producer prices slipped 1.4% in September after falling at 0.8% in the previous two months, the Federal Statistical Office, or Destatis, reported Monday. 

Producer prices fell for the 15th consecutive month in a row, largely driven by the ongoing decline in energy prices. 

Producer prices, excluding energy prices, rose 1.2% from a year ago in the month. 

Moldova narrowly voted for European Union membership according to the preliminary results published by the election commission. 

About 50.17% of voters preferred to join the European Union, far fewer than predicted by polls in the run-up to the voting. 

Incumbent president Mai Sandu received 42% of votes cast in the first round of the presidential election held on October 20, trailed by Alexsandr Stoianoglo with 26% of votes. 

Sandu and Stoianoglo advanced to the second and final phase of the election to be held on November 3. 

 

Europe Indexes and Yields

The DAX index decreased by 0.7% to 19,519.77; the CAC-40 index fell by 0.8% to 7,555.50; and the FTSE 100 index decreased by 0.2% to 8,340.44. 

The yield on 10-year German bonds edged lower to 2.24%, French bonds inched higher to 2.97%, the UK gilts edged up to 4.12%, and Italian bonds increased to 3.44%.

The euro edged lower to $1.08; the British pound inched higher to $1.30; and the U.S. dollar strengthened to 86.42 Swiss cents.

Brent crude decreased $1.20 to $74.35 a barrel, and the Dutch TTF natural gas rose by €0.81 to €40.15 per MWh. 

 

Europe Stock Movers

Resource stocks advanced in Monday's trading after commodity prices rose in Asian and European trading. 

BP plc increased 1.9% to 407.35 pence, Shell PLC advanced 1.1% to 2,564.50 pence, Antofagasta rose 0.6% to 1,839.50 pence, Anglo American inched higher 0.1% to 2,381.50, and Glencore added 0.7% to 411.49 pence. 

FirstGroup plc added 0.4% to 139.90 pence, and the company confirmed the acquisition of the London-based coach operator Anderson Travel. 

Hollywood Bowl PLC jumped 2.5% to 334.50 pence after the company estimated adjusted earnings in fiscal 2024 are likely to surpass market expectations. 

Forvia SE advanced 6.5% to €8.50 after the automobile parts maker reported better-than-expected third quarter sales. 

JDE Peets jumped 16.7% to €22.14 after the company reiterated its annual outlook and appointed a new chief executive officer. 

Nokia Oyj gained 1.5% to €4.34 after the Finnish telecom company announced a new partnership with Vietnam Posts and Telecoms Group to deploy 5G networks. 

DNB Bank ASA increased 0.5% to €18.57, and Norway's largest bank agreed to acquire all shares of Carnegie Holding AB for SEK 12 billion.