Eurozone Industrial Production Holds Steady, Germany's Trade Surplus Shrinks

Bridgette Randall
13 Dec, 2024
London

Stock market indexes across Europe struggled to advance but extended weekly gains for the fourth week in a row amid a raft of economic updates. 

Benchmark indexes in Paris, Frankfurt, Milan, and London advanced and extended weekly gains a day after the European Central Bank trimmed its key lending rates and lowered its growth and inflation outlook. 

The Elysee Palace said on Thursday evening that President Emmanuel Macron is expected to name the next prime minister of France on Friday. 

Macron is struggling to form the next government after the historic collapse of the minority government over budget disagreements and leadership challenges. 

 

France Confirms October Inflation

France's consumer price inflation was confirmed at 1.3% in November, slightly higher than 1.2% in October. 

The statistical agency INSEE confirmed the preliminary inflation data released on November 29. 

 

Eurozone Industrial Production Holds Steady 

Industrial production in the Euro Area held steady in October, following a 1.5% decline in September, Eurostat reported Friday. 

Among major economies in the eurozone, Germany recorded a decline of 1.1% in production, while France's output decreased by only 0.2%. Spain's production rose by 1%. 

On an annual basis, industrial production decreased by 1.2% in October, easing from a fall of 2.2% in September, amid worries of export growth and weak domestic demand. 

 

Germany's Trade Surplus Continues to Shrink in October 

Germany's calendar and seasonally adjusted goods exports decreased 2.8% to €124.6 billion, and imports rose 1.7% to €111.2 billion, resulting in a 29.1% decrease in trade surplus to €13.4 billion. 

German shipments to the U.S., the leading destination for the country's goods, fell 14.2% to €12.2 billion, according to the report released by Destatis. 

Shipments to the People's Republic of China fell by 3.8% to €6.9 billion but rose to the UK by 2.1% to €6.5 billion. 

Imports from China, the leading source of goods for Germany, decreased 3% to €13.7 billion; arrivals from the U.S. fell by 3.9% to €7.4 billion, and from the UK increased by 1.4% to €3.0 billion. 

 

Germany's Wholesale Deflation Extends to Fourth Month

Germany's wholesale price inflation decreased 0.6% in November, slower than a decline of 0.8% in October, the Federal Statistical Office, or Destatis, reported Friday. 

The wholesale prices have been on the slide since May 2023, and the latest fall was the weakest in four months. 

 

Europe Indexes and Yields

The DAX index increased by 0.3% to 20,486.18; the CAC-40 index rose by 0.3% to 7,443.68; and the FTSE 100 index inched higher by 0.1% to 8,319.98.

The yield on 10-year German bonds edged higher to 2.22%, French bonds inched up to 2.98%, the UK gilts increased to 4.37%, and Italian bonds increased to 3.34%.

The euro edged higher to $1.05; the British pound inched up to $1.27; and the U.S. dollar advanced to 89.40 Swiss cents.

Brent crude increased $0.69 to $74.07 a barrel, and the Dutch TTF natural gas rose by €0.37 to €42.93 per MWh. 

 

Europe Stock Movers

Swiss Re AG jumped 3.7% to CHF 132.50 after the reinsurance company said it is targeting after-tax income of 4.4 billion in 2025. 

Munich Re AG soared 5.4% to €514.80 after the German reinsurance company estimated the group's 2025 revenue to reach €64 billion and net income of €6.0 billion. 

Tullow Oil plc plunged 11% to 23.15 pence after the U.S.-based Kosmos Energy confirmed that the company is in "preliminary discussions" for a possible all-share takeover offer for the London-based oil explorer. 

Pricer AB jumped 9.1% to SEK 13.22, and a Swedish electronic shelf labeling provider said its partner JRTech Solutions signed an agreement with Canada-based Sobeys to install 5 million digital labels. 

Sobeys, Canada's family grocery store, operates about 1,600 stores across all 10 provinces under various brand names, including IGA, Safeway, Foodland, and Thrifty Foods.