Newscasts - Europe Markets Briefing: European markets mixed as euro zone inflation dips
01/10/2024 16:00
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_txqfn4qb&referenceId=1_txqfn4qb&pageId=Newscasts Source: 'Reuters - Business videos' Description: European markets were mixed as as euro zone inflation dipped below 2% for the first time since mid-2021 in September. Short Link: https://refini.tv/4eCyYZu Video Transcript: European markets are higher as inflation in the Eurozone dips below 2%. Welcome to your Europe Markets Briefing. I'm Ludovica Brignola. European markets kicked off October trading on a high note. Shares of German chemicals group Covestro surged after Abu Dhabi's national oil company ADNOC agreed to acquire it for EUR14.7 billion. Meanwhile, British bakery chain Greggs fell 4.48% as sales growth showed signs of cooling. Renault shares also fell to the bottom of France Cat Carand extending auto sector losses recorded in the previous session, and that's amid growing industry pressures and heightened competition from China. Well, let's take a look at the bond markets now, and bund yields were down as much as 9.5 basis points as Eurozone inflation dipped below 2% for the first time since mid 2021 in September, that could reinforce an already solid case for a European Central Bank rate cut this month as a three-year battle to tame price growth nears its end. Meanwhile, manufacturing activity across the Eurozone declined at its fastest pace this year in September, and that's as demand waned sharply despite factories cutting their prices. Germany recorded its most pronounced worsening of factory conditions for 12 months. That, though, does not seem to worry investors. And there are actually quite a lot of good things within the European economy at the moment. My colleagues over at FTSE Russell reckon that bonds compared to the US and other developed markets seem relatively well priced. They're offering attractive opportunities. And if you look at the state of the US economy or it's the US markets, where there's a lot of money of course going into US equities, it's all concentrated on the mega caps. And look at tomorrow now. And the unemployment rate in the Eurozone is expected to come out on Wednesday, and it's thought to remain stable at 6.4% in August, as the previous two months. The figure was the single currency blocs record low. Investors will gauge whether the disinflation process underway in Europe will come at the expense of higher unemployment. JD Sport is also expected to report first half earnings tomorrow, and the focus will be on whether the group maintains its cautious outlook after it said in August it expected markets globally to remain highly promotional for the rest of the year after completing the purchase of American athletic fashion retailer Hibbett in July. JD now makes over 45% of its turnover in the US. Insurance company Saga is also set to report tomorrow. Well, that is your Europe Markets Briefing