European Markets Rebounded, Spain's Jobless Rate Dropped to New Low Since 2008

Bridgette Randall
28 Jan, 2025
London

 European markets advanced in Tuesday's trading, and investors awaited rate decisions from major central banks and updates on inflation and growth outlooks.

Benchmark indexes in Frankfurt, Paris, Milan, and London advanced, and investors looked forward to comments from ECB president Christine Lagarde after the two-day policy meeting ending Thursday.

Investors are also looking forward to signals for additional rate cuts and updates on inflation and economic growth amid persistent weakness in the broader economy in the region and a lack of improvement in consumer sentiment.

Germany, France, and Italy are struggling to increase their global exports amid rising competition from Asian companies and slowing economic growth in China and Japan.

Moreover, chaotic U.S. presidential administration and U.S. trade policy uncertainties are also adding to market anxieties in European trading. 

Separately, Spain's economy ministry said it will raise GDP growth estimates for the current year above the target of 2.4%. 

Spain's jobless rate eased to 10.6% in the fourth quarter of 2024, down from 11.2% in the previous quarter, the National Statistics Institute reported Tuesday. 

The jobless rate dropped to the lowest level since the second quarter of 2008, after the number of unemployed people declined by 158,600 from the previous quarter to 2.59 million. 

Meanwhile, the number of employed increased by 34,800 to 21.86 million,  

 

Europe Indexes and Yields

The DAX index moved higher by 0.4% to 21,355.89; the CAC-40 index fell 0.2% to 7,892.81; and the FTSE 100 index advanced by 0.4% to 8,537.75. 

The yield on 10-year German bonds inched higher to 2.54%, French bonds advanced to 3.28%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.65%.

The euro edged higher to $1.04; the British pound was flat at $1.24; and the U.S. dollar was higher and traded at 90.64 Swiss cents.

Brent crude increased $0.39 to $77.47 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

 

Europe Stock Movers

SAP AG gained 1% to €264 after the German software company posted strong growth in the fourth quarter ending in December.

SThree Plc dropped 5% to 270.84 pence after the London-based staffing company posted lower pre-tax earnings in the fiscal year ending in November. 

Sartorius AG surged 10.8% to €231.40 after the life sciences company closed fiscal 2024 with a positive fourth quarter ending in December.

Preliminary full-year sales revenue increased 0.1% to €3.38 billion, at a profit margin of 28%.

The biotech company remains cautiously positive for its 2025 outlook, with growth expected in both divisions.

Freenet AG increased 1.1% to €29.34 after the German media company appointed Robin John Andes Harries as its new chief executive.

Netcompany AS plunged 6.5% to €41.50 after the technology company reported lower-than-expected revenue and operating earnings in the fourth quarter. 

Free cash flow was significantly higher because of improvements in working capital, despite the decline in revenue. 

The company's revenue growth guidance of a 5% increase fell short of market expectations of a 10% increase.