Investors In Europe Hope Thursday's Rate Cut to Follow More Trims In First Quarter

Bridgette Randall
11 Dec, 2024
London

European stock market indexes traded around the flatline ahead of rate decisions on Thursday amid ongoing political turmoil in France and Germany. 

Benchmark indexes in Paris, Frankfurt, Milan, and London lacked direction for the third consecutive day, and investors anticipated a rate cut of at least 25 basis points at the end of the policy meeting on Thursday. 

Investors are also looking forward to the policy committee's estimates on inflation and economic growth outlook in the currency union. 

Market indexes soared as much as 4% in the previous week in the hopes that the central bank is ready to cut rates by 25 basis points and may signal additional cuts in the imminent future following a string of weak economic indicators. 

 

Europe Indexes and Yields

The DAX index decreased by 0.2% to 20,318.38; the CAC-40 index fell by 0.6% to 7,435.80; and the FTSE 100 index inched lower by 0.6% to 8,300.01.

The yield on 10-year German bonds edged higher to 2.12%, French bonds inched down to 2.85%, the UK gilts increased to 4.30%, and Italian bonds increased to 3.20%.

The euro edged higher to $1.05; the British pound inched up to $41.27; and the U.S. dollar eased to 87.99 Swiss cents.

Brent crude decreased $0.41 to $71.72 a barrel, and the Dutch TTF natural gas rose by €0.17 to €45.10 per MWh. 

 

Europe Stock Movers

Adidas AG decreased 1.1% to €236.80 after the German tax authorities raided the company’s headquarters as part of the ongoing tax investigation.

Inditex SA declined 6.5% to €51.32 after the parent company of Zara reported weaker-than-expected sales and profit in the third quarter.

However, the apparel retailer signaled a strong start to holiday season sales.

Siemens Energy AG dropped 1.4% to €48.72 after the U.S.-based rival GE Vernova offered a cautious outlook for its struggling wind energy unit.

Zalando SE plunged 4.7% to €32.80 after the online fashion group agreed to acquire its rival About You Holding for €1.1 billion. 

About You shareholders Otto Group, Otto Family, Heartland, and the company management entered into binding agreements to sell their shares, representing about 73% of total outstanding shares.

After Zalando's offer, About You Holding SE jumped 65% to €6.45. 

TUI AG declined 2.2% to €8.26 despite the tour operator reporting higher profit in fiscal 2024 and estimating higher profits in fiscal 2025.

Bilfinger SE rose 5.3% to €47.85 after the company launched a new stock buyback plan. 

Cohort PLC jumped 5.2% to 1,075.80 pence after the software company reported record performance in the fiscal first half. 

British American Tobacco PLC jumped 1.1% to 2,999.67 pence after the company reaffirmed its annual outlook.

RM plc rose 8.5% to 96.61 pence after the education technology and assessment solution provider said its fiscal year 2024 ending in November is likely to surpass market expectations.