Global Market News

Inflation, Global Growth Concerns Dent European Bourses Midday


Last updated: 01/24/2023 06:34:42

06:34 AM EST, 01/24/2023 (MT Newswires) -- European bourses opened higher in the morning but lost steam midday Tuesday as traders weighed global prospects for growth and inflation and the ongoing war in Ukraine. A positive pan-European purchasing managers index (PMI) report was shrugged off.

Oil issues led decliners, while insurance stocks bucked broad trends to trade in the green.

Trading-floor denizens also eyed Wall Street futures signaling red, and higher closes overnight on Asian exchanges but in heavily thinned holiday trading.

The Eurozone composite purchasing managers index (PMI), which includes both manufacturing and services activity, posted at at 50.2 in January, up from 49.3 in December, reported S&P Global. Readings above 50 points to private-sector expansion, while below 50 signals contraction.

The pan-continental Stoxx Europe 600 Index was off 0.3% mid-session.

The Stoxx Europe 600 Technology Index was off 0.3%, and the Stoxx 600 Banks Index was steady.

The Stoxx Europe 600 Oil and Gas Index was off 0.9%, and the Stoxx 600 Europe Food and Beverage Index declined 0.4%.

The REITE, a European REIT index, fell 0.3%, but the Stoxx Europe 600 Insurance Index rose 0.6%.

On the national market indexes, Germany's DAX was down 0.4%, and the FTSE 100 in London was off 0.5%. The CAC 40 in Paris was off 0.1%, and Spain's IBEX 35 lost 0.2%.

Yields on benchmark 10-year German bonds were lower, near 2.20%.

Front-month North Sea Brent crude oil futures were steady, near $88.22 per barrel.

The Euro Stoxx 50 volatility index was up 4.2% to 23.56, indicating above-average volatility for European stock markets in the next 30 days. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges. The volatility index was notching over the 30-marker in late September.
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