European Markets Struggled to Advance In Cautious Trading, Spain's January Jobless Rate Dropped to 17-Year Low

Bridgette Randall
04 Feb, 2025
London

European market indexes whipsawed as investors reviewed the latest U.S. actions on the international trade policy. 

Benchmark indexes in Paris, Frankfurt, Milan, and London lacked direction after the U.S. suspended the threat of 25% tariffs on Mexico and Canada but imposed an additional 10% tariff on Chinese imports. 

Market sentiment has been dampened amid the growing realization that the current U.S. presidential administration is likely to pursue a confrontational trade policy.

The U.S. is targeting the European Union to purchase more goods and reduce its overall trade surplus.

Over the last ten years, the European Union has averaged a goods surplus of 100 billion a year with the U.S.

The latest trade confrontation with the U.S. comes at a critical time for the European Union, and the region's economy has been stagnant for many years, and businesses have been struggling to adjust to high costs of energy.

 

Spain's Jobless Rate Drops to 17-Year Low

The number of people registered as jobless increased by 38.275 to 2.6 million, the lowest level in 17 years, according to the data released by the Ministry of Labor and Social Welfare Tuesday.

Unemployment among young people under 25 years of age rose by 1.4% to 188,364 people, the lowest on record for January.

 

Europe Indexes and Yields

The DAX index decreased by 0.06% to 21,415.21; the CAC-40 index increased 0.15% to 7,866.62; and the FTSE 100 index declined by 0.15% to 8,571.10. 

The yield on 10-year German bonds inched higher to 2.42%, French bonds increased to 3.13%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.53%.

The euro declined to $1.03; the British pound was lower at $1.24; and the U.S. dollar was lower and traded at 90.87 Swiss cents.

Brent crude decreased $0.90 to $75.06 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

 

Europe Stock Movers

UBS Group AG declined 6% to CHF 29.87 despite the Swiss financial service company posting better-than-expected results in the December quarter. 

BNP Paribas increased 1.7% to €65.40 after the French banking group announced a new stock buyback program and higher-than-expected dividend.