European Markets Halt 3-Day Losing Streak, Swiss Inflation Slows but Nominal Prices Remain High

Bridgette Randall
01 Nov, 2024
London

Stock market indexes in Europe advanced and halted three consecutive days of losses as investors continue to review the latest corporate results and economic outlook. 

Investors reassessed the timing and amount of future rate cuts after inflation rebounded in the eurozone and third quarter economic growth accelerated in the currency union, according to official releases earlier in the week. 

 

Swiss Inflation Decelerates in October

Switzerland's consumer price inflation eased to an annual rate of 0.6% in October from 0.8% in September, the Swiss Federal Statistics Office reported Friday. 

Overall inflation slowed for the third month in a row in October and dropped to the lowest level since June 2021. 

Monthly inflation decreased 0.1% from the previous month, marking no growth for the fifth month in a row. 

While inflation may be decelerating in Switzerland, nominal prices are still rising, and prices of most basic goods and services are generally the highest in Europe and among developed nations. 

 

UK Home Price Inflation Extended to Eighth Month In October

UK home price inflation slowed in October, and home prices rose for the eighth month in a row, the Nationwide Building Society reported Friday. 

The Nationwide House Price Index increased 2.4% in October after rising 3.2% in September. 

House prices have been rising, indicating strong demand as mortgage approvals approach pre-pandemic levels despite higher interest rates. 

On a monthly basis, house price inflation eased to 0.1% in October, slowing from a revised 0.6% increase in September. 

 

Europe Indexes and Yields

The DAX index increased by 0.6% to 19,182.42; the CAC-40 index rose by 0.6% to 7,397.16; and the FTSE 100 index rose by 0.8% to 8,173.75. 

The yield on 10-year German bonds edged higher to 2.39%, French bonds inched higher to 3.14%, the UK gilts edged higher to 4.42%, and Italian bonds increased to 3.67%.

The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar weakened to 86.81 Swiss cents.

Brent crude increased $1.48 to $74.25 a barrel, and the Dutch TTF natural gas rose by €0.87 to €39.46 per MWh. 

 

Europe Stock Movers

China-linked luxury stocks advanced following a private survey confirming the official reading of the manufacturing sector, indicating rising activities. 

Hermes International increased 0.3% to €2,080.0, Kering SA decreased 0.3% to €228.15, and LVMH added 0.4% to €611.90. 

Energy complex stocks advanced after crude oil prices rebounded following reports that Iran is preparing to launch a military strike on Israel that could involve drones and ballistic missiles. 

BP plc increased 1.8% to 383.45 pence, Shell PLC rose 1.4% to 2,614.0 pence, and TotalEnergies SE jumped 2% to €58.55.