European Markets Trim Weekly Losses, Eurozone Business Activity Index Improves

Bridgette Randall
21 Feb, 2025
London

European markets edged slightly higher in Friday's trading, and investors reviewed the latest business activity surveys in the Euro Area, France, and Germany, and corporate earnings in the European Union. 

Benchmark indexes in Paris, Frankfurt, Milan, and London edged higher, and they trimmed weekly losses amid rising trade tensions with the U.S. 

The HCOB Eurozone Composite PMI advanced to 50.2 in February, indicating a modest recovery in the private sector activities, according to a report released by S&P Global. 

The HCOB Germany Composite PMI in February edged up to 51.0 from 50.5 in January, after contraction in the manufacturing sector slowed slightly. 

The business activity index in Germany rose to a nine-month high, and the services sector business activity index edged lower to 52.2, down from 52.5, and the manufacturing index improved to 46.1 from 45.0 in January, respectively.

However, the business activity index in France contracted in February to 44.5 from 47.6 in January, and the index dropped to the lowest level in a year. 

The UK retail sales volume expanded at the fastest pace in a year due to a rebound in food store sales, the Office for National Statistics reported Friday. 

Retail sales increased monthly by 1.7%, reversing the decline in the previous five months, and slowed to an annual pace of 1% in January from the 2.8% rise in the previous month.

 

Europe Indexes and Yields

The DAX index increased by 0.1% to 22,336.85, the CAC-40 index edged higher 0.3% to 8,148.18, and the FTSE 100 index advanced by 0.03% to 8,665.39. 

The yield on 10-year German bonds inched lower to 2.50%, French bonds decreased to 3.25%, the UK gilts moved up to 4.62%, and Italian bonds edged lower to 3.58%.

The euro decreased to $1.05; the British pound was lower at $1.26; and the U.S. dollar was higher and traded at 89.89 Swiss cents.

Brent crude decreased $0.42 to $76.06 a barrel, and the Dutch TTF natural gas was higher by €0.77 to €48.19 per MWh.

 

Europe Stock Movers

Standard Chartered advanced 4% to 1,185.50 pence after the British bank reported a decline in profit in the fourth quarter but announced a $1.5 billion stock buyback. 

Associated British Foods plc increased 1.6% to 1,912.31 pence after the UK-based company launched its second tranche of the stock repurchase plan. 

Sika AG rose 1.5% to CHF 239.30, and the Swiss construction chemical maker said sales in the fourth quarter increased 4.7% in Swiss francs to CHF 11.7 billion and net income advanced 17.4% to CHF 1.25 billion. 

Air Liquide SA increased 3.5% to €178.84, and the French industrial gas producer reported higher-than-expected sales in 2024, lifting its medium-term operating margin estimate.

Repsol SA declined 1.3% to €12.78, and the Spanish energy company reported net income in 2024 plunged 45% to €1.8 billion from €3.3 billion a year ago.

The company announced its plans to increase its dividend by 30% to €0.90 in 2024 and 97.5 cents in 2025, an increase of 8.3% from the previous year. 

The Spanish energy company also plans to increase its stock buyback to €700 million in the current year and reduce its capital spending.