Trump's Return to White House May Pose Multiple Challenges for the EU, European Markets Advanced 1%

Bridgette Randall
06 Nov, 2024
London

European markets advanced and bond yields edged lower as investors reviewed the latest batch of earnings and economic releases. 

Benchmark indexes in Paris, Milan, Frankfurt, and London advanced, and the former U.S. president Donald Trump was presumed to be the winner of the latest U.S. presidential election. 

Trump's win may prove to be trickier for European businesses and politicians, as the new administration is likely to ramp up trade barriers and push European nations to pay a higher share of the NATO budget. 

The Trump administration is also likely to impose new trade barriers with the European Union and demand member nations import more from the world's largest economy and lower persistent trade surpluses. 

On the economic front, Germany's factory orders rebounded at a faster-than-expected pace in September after demand for military vehicles, aircraft, ships, and trains soared 117.1%.

Automotive orders increased 2.9%, but the metal production and processing sector declined 10%, and mechanical engineering fell 3.6%. 

Factory orders increased 4.2% from the previous month and advanced 1% from a year ago in September, following a downwardly revised 5.4% decrease in the previous month. 

Excluding large orders, incoming orders rose 2.2% from the previous month. 

 

Europe Indexes and Yields

The DAX index increased by 0.9% to 19,430.32; the CAC-40 index rose by 1.4% to 7,512.89; and the FTSE 100 index rose by 1.2% to 8,270.27. 

The yield on 10-year German bonds edged lower to 2.36%, French bonds inched lower to 3.11%, the UK gilts edged higher to 4.51%, and Italian bonds decreased to 3.62%.

The euro edged higher to $1.07; the British pound inched higher to $1.29; and the U.S. dollar weakened to 87.57 Swiss cents.

Brent crude decreased $0.92 to $74.60 a barrel, and the Dutch TTF natural gas rose by €1.12 to €39.40 per MWh. 

 

Europe Stock Movers

Credit Agricole SA declined 5.7% to €13.49 after the French bank reported mixed quarterly results as record revenue in its investment banking unit overshadowed weakness in its retail business. 

Puma SE dropped 5.7% to €40.0 after the German footwear company reported lower-than-expected sales in the third quarter. 

BMW AG declined 6.8% to €67.66, and the German luxury automaker reported third quarter net income plunged 61%. 

Siemens Healthineers rose 6.6% to €51.58 after the German media technology company reported financial results that matched investor expectations. 

Marks & Spencer Group increased 4.4% to 400.70 pence after the UK-based retailer reported higher-than-expected profit in the first half.