European Markets Extend 2-Day Losses, New Car Registration Drop In September

Bridgette Randall
22 Oct, 2024
London

Stock market indexes in key European cities declined for the second day in a row this week, and the euro and the pound edged lower. 

Benchmark indexes in Paris, London, Frankfurt, and Milan eased after investors lowered expectations of a rate cut in the imminent future. 

Crude oil prices edged higher amid elevated tensions in the Middle East, and investors are bracing for possible supply disruptions as early as next week.

Israel is preparing for a military strike targeting Iran's oil infrastructure, including storage depots, distribution pipelines, and port facilities. 

In other economic news, the U.K.'s budget deficit widened more than expected in September and reached a three-year high for the month amid rising spending. 

Automakers were in focus after passenger car registrations declined for the second month in a row amid high interest rates and elevated cost of living. 

Monthly passenger car sales are now running 50% lower compared to a monthly average between 2015 and 2019. 

 

Passenger Car Registration Falls for the Second Month In September 

Passenger car registration in September declined 6% to 809,163 units. according to the European Automobile Manufacturers' Association, or ACEA. 

Passenger car sales declined for the second month in a row after falling 18% in the previous month, and sales declined in three of the four key markets in the region. 

Registrations declined 11.1% in France, 10.7% in Italy, and 7% in Germany, but rose 6.3% in Spain. 

Registration increased 0.6% to almost 8 million units in the nine-month period to September and fell 1.8% in France and 1.0% in Germany. 

However, registration in the nine-month period rose 4.7% in Spain and 2.1% in Italy. 

Buyers continued to prefer battery-operated vehicles, with their market share accounting 17.3% in September, higher than 14.3% in the corresponding month a year ago. 

However, market share of the battery-operated vehicles in the nine-month period decreased to 13% from 14% a year ago. 

 

Europe Indexes and Yields

The DAX index decreased by 0.4% to 19,378.65; the CAC-40 index fell by 0.8% to 7,473.65; and the FTSE 100 index decreased by 0.7% to 8,257.15. 

The yield on 10-year German bonds edged higher to 2.33%, French bonds inched higher to 3.06%, the UK gilts edged up to 4.17%, and Italian bonds increased to 3.55%.

The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar strengthened to 86.57 Swiss cents.

Brent crude increased $0.76 to $75.05 a barrel, and the Dutch TTF natural gas rose by €0.65 to €40.68 per MWh. 

 

Europe Stock Movers

SAP SE increased 4% to €219.35 after the German resource planning software company lifted its full-year sales estimate, backed by strong demand for its cloud services in the third quarter. 

Logitech International SA decreased 4.5% to CHF 73.0 despite the Swiss computer accessory maker raising its full-year outlook. 

Tele2 AB decreased 3.2% to SEK 107.85 after the Swedish telecom company reported net sales in line with market expectations in the third quarter. 

Saab AB jumped 6.5% to SEK 234.25 after the Swedish aerospace and defense company reported a strong increase in new orders and earnings in the third quarter. 

Mulberry Group PLC declined 0.8% to 126.50 pence after the fashion group rejected a second hostile offer from Fraser Group. 

Intercontinental Hotels Group increased 0.7% to 8,628.0 pence after the company said its revenue per available room increased 1.5% in the third quarter. 

Halfords Group plc advanced 7.5% to 152.40 pence after the retailer of vehicle parts and service center operator reported stable first-half sales and the company reiterated its full-year outlook.