European Passenger Car Sales Flat In 2024, UK Jobless Rate Jumps to Multi-Month High

Bridgette Randall
21 Jan, 2025
London

European markets struggled to stay above the flatline in Tuesday's trading, and bond yields edged lower, tracking the yields on the U.S. Treasury notes. 

Benchmark indexes in Paris, Frankfurt, and London lacked direction as investors reviewed the latest jobless report in the UK, construction update, and passenger car sales in the EU. 

Market sentiment in the eurozone has been weak amid a list of worries hobbling enthusiasm as investors reviewed the latest batch of corporate results. 

The incoming U.S. presidential administration has delayed placing trade tariffs on manufactured goods from the EU, Canada, China, and Asia to February, but the looming uncertainty continues to weigh on the market. 

 

Eurozone Construction Decline Halted after 10-Month Slide

In the euro area, construction output in November 2024 rose by 1.4% from a year ago and by 0.9% in the European Union, boosted by construction of buildings.

Compared to October 2024, construction in the currency bloc expanded by 1.3%, according to data released by Eurostat on Monday. 

Construction activity was higher in Italy and Spain, but slower in France and Germany.

On an annual basis, the highest increases in construction were recorded in Spain, Bulgaria, and Belgium, while the largest decreases were observed in Romania, Poland, and Slovenia.

 

EU Car Sales Barely Advanced in 2024

The passenger car market in the European Union expanded by 5.1% in December 2024, the European Automobile Manufacturers' Association reported on Tuesday.

Vehicle sales rebounded from a 1.9% decline in November, following the strength in Spain and France, two of the largest markets in the region.

Sales rose sharply in Spain by 28.8%, in France by a modest 1.5%, but fell in Germany by 7.1% and in Italy by 4.9%.

Battery electric car sales in December fell by 10.2% to 144,367 units and held its market share steady around 15.9%, due to significant decreases in sales in Germany by 38.6% and France by 20.7%.  

Petrol car sales dropped by 1.8% to 269,260 units, and the diesel car market declined by 15%.

Plug-in hybrid car sales rose by 4.9%. 

Hybrid-electric car sales increased 33.1% in December, with market share expanding to 33.6% from 26.5% a year ago, exceeding petrol car registrations for the fourth consecutive month.

For the full year 2024, overall car sales rose annually by 0.8% to 10.6 million units, and the battery-powered vehicle market share was 13.6%.

 

UK Unemployment Rate Highest Since May 2024

The UK unemployment rate in the three months to November was estimated at 4.4%, the highest level since May 2024, and above the 4.3% recorded for the three-month period to October, the Office for National Statistics showed on Tuesday.

Wage growth in the third quarter remained high, but falling vacancies signal a decrease in pay pressures.

Average earnings excluding bonuses climbed 5.6% in the three months to November from a year ago, slightly faster than the forecast of 5.5%. 

Earnings, including bonuses, also rose 5.6% annually, which was in line with expectations set by some economists. 

 

Europe Indexes and Yields

The DAX index edged lower by 0.02% to 20,958.25; the CAC-40 index rose 0.04% to 7,736.64; and the FTSE 100 index edged higher by 0.1% to 8,529.39. 

The yield on 10-year German bonds decreased to 2.49%, French bonds eased to 3.29%, the UK gilts declined to 4.66%, and Italian bonds edged lower to 3.61%.

The euro was higher at $1.03; the British pound inched higher to $1.22; and the U.S. dollar was lower at 91.06 Swiss cents.

Brent crude decreased $0.33 to $79.43 a barrel, and the Dutch TTF natural gas fell by €0.90 to €46.23 per MWh.

 

Europe Stock Movers

Banks led gainers in trading on European exchanges after bond yields edged lower and the euro and the pound stabilized near two-year lows. 

Barclays gained 0.8% to 294.15 pence, HSBC advanced 0.1% to 826.30 pence, UniCredit decreased 0.5% to €42.87, BNP Paribas declined 0.2% to €62.83, and Societe Generale fell 0.6% to €62.83. 

Essentra PLC declined 0.7% after the engineering company reported trading and share buyback updates.

The company estimated flat sales and reiterated its previous operating earnings outlook. 

Premier Foods jumped nearly 3% to 184.33 pence after the food products maker estimated annual profit near the top end of the range estimated by analysts.