Global Market News

Rising Interest Rates Cap European Stock Markets Midday


Last updated: 09/22/2023 07:42:52

07:42 AM EDT, 09/22/2023 (MT Newswires) -- European bourses tracked modestly lower midday Friday as traders weighed rising interest rates and recent hawkish commentary from major central banks.

Oil stocks and tech issues gained, while property issues lagged.

Investors also eyed Wall Street futures signaling green, but choppy closes overnight on Asian exchanges.

The flash Eurozone composite purchasing managers index (PMI) posted at 47.1 in September, up from 46.7 in August but still below the 50-marker that separates growth from contraction, reported S&P Global.

The flash Eurozone services PMI posted 48.4 in September, up from 47.9 in August, and the flash Eurozone manufacturing PMI logged at 43.4, unchanged from August.

The pan-continental Stoxx Europe 600 Index was off 0.1% mid-session.

The Stoxx Europe 600 Technology Index was up 0.1%, but the Stoxx 600 Banks Index was flat.

The Stoxx Europe 600 Oil and Gas Index was up 0.5%, but the Stoxx 600 Europe Food and Beverage Index declined 0.4%.

The REITE, a European REIT index, fell 0.9%, and the Stoxx Europe 600 Insurance Index declined 0.3%.

On the national market indexes, Germany's DAX was down 0.1%, but the FTSE 100 in London was up 0.6%, boosted in part by resource issues. The CAC 40 in Paris was off 0.5%, and Spain's IBEX 35 lost 0.2%.

Yields on benchmark 10-year German bonds were higher, near 2.75% and striking close to 12-year highs.

Front-month North Sea Brent crude-oil futures were up 0.9% to $94.09 per barrel.

The Euro Stoxx 50 volatility index was up 1.96% to 17.45, but still indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.
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