European Markets Extend Weekly Advances, German Exports and Imports Drop In 2024

Bridgette Randall
07 Feb, 2025
London

European markets meandered after trading near record highs in the previous session, and investors kept their focus on corporate results. 

Benchmark indexes in Paris, Frankfurt, Milan, and London flatlined a day after the Bank of England lowered its key lending rate. 

The Bank of England trimmed its bank rate by 25 basis points to 4.5%, and policymakers struggled to balance concerns to promote economic growth and stubborn services inflation.

Germany's industrial output declined monthly 2.4% in December, rebounding from a downwardly revised decline of 1.3% in the previous month. 

On an annual basis, industrial production contracted 3.1%, accelerating from the 2.8% fall in the previous month, according to the monthly update released by Destatis.

In 2024, Germany's goods exports decreased 1% to €1.6 trillion, and imports fell 2.8% to €1.3 trillion, resulting in a goods trade surplus of €241.2 billion.

After a week of trading, the DAX index increased 2.6%, the CAC-40 advanced 2.4%, and the FTSE 100 index edged up 0.3%.

 

Europe Indexes and Yields

The DAX index increased by 0.08% to 21,919.94, the CAC-40 index declined 0.05% to 8,003.78, and the FTSE 100 index dropped by 0.14% to 8,714.65. 

The yield on 10-year German bonds inched lower to 2.36%, French bonds decreased to 3.08%, the UK gilts moved down to 4.47%, and Italian bonds edged lower to 3.43%.

The euro increased to $1.04; the British pound was higher at $1.24; and the U.S. dollar was higher and traded at 90.62 Swiss cents.

Brent crude increased $0.65 to $74.94 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

 

Europe Stock Movers

Iveco Group NV soared 17% to €13.56, and the Italian truck and bus maker said it is considering spinning off its defense business.

Henkel AG advanced 1.8% to €84.96 after the German consumer products company said it plans to sell its retailer brand business to an affiliate of First Quality Enterprises. 

L'Oreal SA decreased 4% to €337.90 after the French cosmetics company reported weaker-than-expected fourth quarter sales. 

Sanofi SA declined 0.4% to €103.68, and the French healthcare company announced a €2 billion stock buyback plan.

Danske Bank AS soared 7.3% to DKK 234.30 after the Danish bank reported strong fourth-quarter financial results.

Legal & General Group advanced 3.5% to 247.88 pence after the British life insurance company agreed to sell its U.S. insurance entity for $2.3 billion to Japan's Meiji Yasuda. 

The U.S. entity comprises protection and pension risk transfer businesses.

Ashmore Group plc decreased 0.4% to 168.10 pence after the emerging markets-focused asset manager reported a 33% decrease in half-year profit.