European Markets Waver Around Flatline, UK Jobless Rate H

Bridgette Randall
18 Feb, 2025
London

Stock market indexes across Europe wavered around the flatline as investors reviewed another batch of earnings and bid up defense stocks. 

Benchmark indexes in Paris, Frankfurt, and London edged up, and defense sector stocks advanced for the second consecutive day. 

Defense stocks were in focus amid growing chatter in diplomatic circles in the region that the European Union member nations should pay for a larger share of security expenses. 

Saab AB, BAE Systems, Dassault Aviation, ThyssenKrupp, MTU Aero Engines, Rheinmetall, Safran, and Airbus jumped between 1% and 3% for the second consecutive session. 

Despite market jitters over the last three weeks, benchmark indexes in Germany and in the UK have hovered near record highs amid rate cut optimism and earnings outlook for leading export-driven companies. 

On the economic front, France's consumer price inflation rose to a five-month high of 1.7% in January from 1.3% in December, according to France's statistical office, INSEE.

The jobless rate in the UK in the fourth quarter held steady at 4.4%, according to the latest data released by the Office for National Statistics. 

Average weekly earnings excluding bonuses rose 5.9% from a year ago, driven by a 6.2% rise in the private sector.

 

Europe Indexes and Yields

The DAX index decreased by 0.1% to 22,769.19, the CAC-40 index edged lower 0.3% to 8,165.08, and the FTSE 100 index declined by 0.02% to 8,765.87. 

The yield on 10-year German bonds inched higher to 2.50%, French bonds increased to 3.18%, the UK gilts moved up to 4.57%, and Italian bonds edged higher to 3.55%.

The euro decreased to $1.04; the British pound was lower at $1.26; and the U.S. dollar was lower and traded at 90.05 Swiss cents.

Brent crude increased $0.44 to $75.65 a barrel, and the Dutch TTF natural gas was lower by €0.32 to €47.36 per MWh.

 

Europe Stock Movers

Renault SA edged up 0.2% to €52.48 after the French automaker signed a framework agreement with the China-based Geely Automobile to develop a market for electric vehicles in Brazil. 

European and Asian electric vehicle makers are looking to alternative markets amid still trade barriers and import tax of more than 100% in the U.S. 

Capgemini SE plunged 9.9% to €168.40 after the information technology services provider reported a 2% decline in annual constant currency sales. 

Antofagasta plc jumped 2.4% to 1,880.50 pence after the Chile-based mining company said 2024 revenue increased 4% and operating income margin expanded to 52%.

BHP Group Ltd. declined 0.3% to 2,084.0 pence after the Australia-based mining company reported a decline in interim profit. 

CTS Eventim AG advanced 4.5% to €105.0 after the company said its 2024 revenue soared 19%, driven by gains in its ticketing and live event segments.