LON THURS

Bridgette Randall
07 Nov, 2024
London

European stock market indexes advanced as investors awaited the release of rate decisions from the Bank of England and the U.S. Federal Reserve. 

Benchmark indexes in Paris, Milan, Frankfurt, and London advanced more than 1% as investors reviewed the latest batch of positive earnings. 

German bond yields surged to 2.49% after the coalition government collapsed paving the way for snap election. 

Chancellor Olaf Scholz sacked his finance minister Christian Lindner, ending the three-party coalition that relied on Lindner's pro-business party's support. 

Lindner had rejected the spending increase proposed by Scholz's Social Democrats and environmental Green Party to finance investment and avoid cutting welfare spending. 

Chancellor Scholz said he plans to seek vote of confidence on January 15 which could lead to early elections before March 15, ahead of the regular election in September 2025. 

Germany's economy is expected to shrink for the second consecutive year in 2024 amid weak consumer demand and exports. 

Germany's exports declined and imports rose in September from a year ago, shrinking its trade surplus, the Federal Statistical Office, or Destatis, said on Thursday. 

Seasonally and calendar adjusted exports decreased 0.2% to €128.2 billion, imports increased 1.3% to €111.3 billion, resulting in the decline of trade surplus to €17.0 billion.  

Exports to the member states of the European Union increased 1.8% to €69.4 billion, to the United States rose 4.8% to €14.2 billion, to China fell 3.7% to €7.1 billion, and to the U.K. decreased 4.9% to 6.4 billion.  

 

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 higher to 2.49%, French bonds inched higher to 3.26%, the UK gilts advanced to 4.55%, and Italian bonds decreased to 3.82%.

The euro edged higher to $1.07; the British pound inched higher to $1.29; and the U.S. dollar weakened to 87.65 Swiss cents.

Brent crude decreased $0.52 to $74.40 a barrel, and the Dutch TTF natural gas rose by €0.25 to €40.92 per MWh. 

 

Europe Stock Movers