European Stock Indexes Retain Negative Bias; Eurozone Trade Surplus Widened, Spain's Trade Gap Shrank

Bridgette Randall
18 Nov, 2024
London

Stock market indexes in Europe edged lower in Monday's trading as investors debated the future rate path and the impact of the potential escalation of trade tensions with the U.S. and China. 

Benchmark indexes in Paris, Milan, Frankfurt, and London traded in a tight range with a downward bias, and the U.S. dollar edged higher as investors lowered expectations for additional rate cuts in the near future. 

On the economic front, the international goods trade balance of the eurozone in October increased, and Spain's trade deficit shrank. 

Spain's international trade gap shrank to €3.3 billion in September from €3.8 billion a year ago, the ministry of industry, commerce, and tourism reported Monday. 

Goods exports increased 1.9% to €31.6 billion, and goods imports advanced 0.1% to €34.9 billion. 

Trade deficit over the nine-month period ending in September 2024 shrank to €27.1 billion from €29.6 billion a year ago. 

The Euro Area trade surplus widened to €12.5 billion in September from €9.8 billion in August, according to a report released by Eurostat. 

Exports increased 0.6% to €237.8 billion, and imports fell 0.6% to €225.3 billion. 

This week, investors are looking forward to the release of manufacturing surveys in the Eurozone, France, Germany, and the U.K.

Moreover, Switzerland is set to release its international trade data later this week. 

 

Europe Indexes and Yields

The DAX index decreased by 0.1% to 19,195.54; the CAC-40 index eased by 0.03% to 7,267.02; and the FTSE 100 index rose by 0.2% to 8,080.42. 

The yield on 10-year German bonds edged higher to 2.37%, French bonds inched higher to 3.11%, the UK gilts edged lower to 4.48%, and Italian bonds increased 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 88.72 Swiss cents.

Brent crude increased $0.50 to $71.54 a barrel, and the Dutch TTF natural gas rose by €0.42 to €46.13 per MWh. 

 

Europe Stock Movers

Melrose Industries PLC increased 6.3% to 520.20 pence after the parent company GKN Aerospace said revenue for the four-month period ending in October increased 7%. 

The company also reiterated its annual outlook for the remainder of the year. 

Elementis plc increased 0.3% to 135.40 pence, and the specialty chemical company said its chief executive officer Paul Waterman would step down after nine years in the office. 

Vivendi SE declined 1.6% to €8.94, and the French media company announced its expectations of revenue for its television business. 

The company is set to separate its Canal+, Havas, and Louis Hachette Group on the London Stock Exchange on December 16 following the shareholder vote on December 9.

The company forecast Canal+ revenue growth in 2024 to match the rate in 2023, but the revenue in 2025 will be negatively impacted by the termination of its free-to-air channel C8 and the ending of expensive third-party content contracts.