Eurozone Third Quarter GDP Growth Reconfirmed at 0.4%, France's Jobless Rate Edged Higher to 7.4%

Bridgette Randall
14 Nov, 2024
London

European markets advanced following positive earnings and corporate news from leading corporations in France, Germany, and Italy. 

Moreover, market sentiment was bolstered after the third quarter's GDP growth in the eurozone was reaffirmed and the jobless rate edged up slightly in the third quarter. 

Investors have been on edge after the U.S. election results amid rising worries of political and trade tensions between the U.S. and the eurozone over the next six months and growing uncertainty over the U.S. policy. 

Moreover, the next U.S. administration is likely to shift the burden of NATO military spending to Europe and wind out war in Ukraine while cutting off aid and negotiating a quick settlement with Russia. 

 

Eurozone Q3 GDP Growth Reaffirmed In Second Estimate 

The eurozone's third quarter GDP growth accelerated to 0.4% sequentially after rising 0.2% in the second quarter, matching the flash estimate, according to a report released by Eurostat on Thursday. 

On an annual basis, GDP growth accelerated to 0.9% from an annual rate of 0.6% in the second quarter, matching the preliminary estimate. 

 

France's Jobless Rate Eased In The Third Quarter 

France's jobless rate in the third quarter edged up to 7.4% from 7.3% in the second quarter, according to the data released by the French statistical agency, or INSEE. 

The unemployed persons in the third quarter increased by 35,000 to 2.3 million, and the jobless rate among women edged lower by 0.2 basis points to 7.2% among women and increased by 0.3% to 7.6% among men. 

The activity rate, which measures the number of people in the job market, increased by 0.3% to 74.8%.

The jobless rate among those between the ages of 25 and 49 decreased by 0.1% to 6.6%, and that between 18 and 24 increased by 1.8% to 19.7%. 

Meanwhile, the jobless rate for people 50 years and older eased by 0.3% from the second quarter to 7.6%. 

 

Europe Indexes and Yields

The DAX index increased by 1.1% to 19,217.99; the CAC-40 index rose by 1.0% to 7,285.61; and the FTSE 100 index rose by 0.4% to 8,060.07. 

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 4.52%, and Italian bonds decreased to 3.59%.

The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 89.04 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

ASML Holding NV soared 5% to €660.0 after the advanced chip equipment maker lifted its sales outlook over the next five years despite sales in the current financial year. 

CEO Christophe Fouquet that the company's technology is capable of scaling over the next five years to "leverage the artificial intelligence opportunity."

The company guided revenue between 44 billion and 60 billion and gross margin between 56% and 60% by 2030.

The current forecast implies that sales are likely to rise annually between 8% and 14% over the next five years. 

Aviva plc gained 4.5% to 476.61 pence after the UK-based insurance company reported meaningful gains in its key business units in the third quarter. 

Burberry Group jumped 18.5% to 867.20 pence after the company's recently appointed chief executive, Joshua Schulman, pledged to stabilize the business with a turnaround plan. 

Premier Foods plc decreased 0.4% to 187.0 pence after the company reported higher sales and earnings in the first half amid rising demand for its food brands. 

Alstom SA soared 7.9% to €21.22 after the French mobility company reported higher-than-expected cash in its interim results driven by rising sales volume and cost savings initiatives.

Thales SA declined 0.6% to €155.55 despite the defense contractor estimating higher sales and growth driven by expansion of its cyber security management systems. 

Siemens AG advanced 6% to €190.20 after the engineering conglomerate reported higher-than-expected fiscal fourth quarter earnings, but the company lowered its sales outlook for fiscal 2025 amid rising geopolitical uncertainties. 

Deutsche Telekom AG jumped 4% to €28.97 after the German telephone company reported better-than-expected third quarter profit and raised its full-year core profit estimate.

Banca Monte dei Paschi di Siena SpA rose 12% to €6.21 after the Italian government sold a 15% stake in the bank to rival Banco BPM. 

Banco BPM gained 2.6% to €6.72.