European Markets Close In Mixed Fashion

The major European markets finished mixed on Friday as the selloff on U.S. Treasuries resumed, with yields on the 10-year notes climbing back above 1.6 percent to their highest levels in over a year.

The increase in yields came after President Joe Biden directed states to make all adults eligible for a coronavirus vaccine by May 1.

The vaccine news combined with the new $1.9 trillion stimulus package has generated optimism about the economic outlook, reducing the appeal of bonds. Bond yields move in opposite direction to prices.

Germany’s DAX fell 67.00 points or 0.46 percent to 14,502.39, while London’s FTSE rose 24.51 points or 0.36 percent to 6,761.47 and the CAC 40 in France gained 12.79 points or 0.21 percent to 6,046.55.

In Germany, Daimler plummeted 1.90 percent, while Covestro tumbled 1.76 percent, Deutsche Telekom spiked 1.63 percent, Deutsche Bank jumped 1.41 percent, Heidelberg Cement climbed 1.32 percent, Deutsche Post advanced 1.14 percent, Volkswagen dropped 0.95 percent, Deutsche Wohnen sank 0.59 percent and E.ON fell 0.52 percent.

In London, M&G soared 2.87 percent, while Rightmove dropped 2.06 percent, Tesco gained 1.73 percent, BAE Systems climbed 1.72 percent, Scottish Mortgage sank 1.71 percent, Prudential advanced 1.22 percent, Rolls-Royce and Compass Group both added 0.92 percent, Royal Dutch Shell rose 0.86 percent, Vodafone improved 0.79 percent, British American Tobacco and Coca-Cola both were up 0.51 percent and Standard Life Aberdeen slipped 0.41 percent.

In France, Carrefour surged 2.10 percent, while Societe Generale jumped 1.78 percent, BNP Paribas climbed 1.43 percent, TOTAL and Veolia Environment both advanced 1.08 percent, Credit Agricole added 1.03 percent, Vivendi lost 0.58 percent, Sanofi fell 0.32 percent and Peugeot was unchanged.

In economic mews, U.K. gross domestic product contracted less than expected in the three months to January, the Office of National Statistics said on Friday. GDP fell 2.9 percent on a monthly basis, reversing an expansion of 1.2 percent in the three months to December but better than the forecast for a 4.9 percent contraction.

German consumer price inflation rose 1.3 percent year-on-year in February following a 1.0 percent increase in January, in line with the flash estimate, latest figures from Destatits showed. On a monthly basis, CPI climbed 0.7 percent in February after a 0.8 percent increase in January, also in line with estimates.

Eurozone industrial production grew more than expected in January – rising 0.8 percent on month, reversing a 0.1 percent drop in December but faster than the expected growth of 0.2 percent. On a yearly basis, industrial output gained 0.1 percent, beating expectations for a 2.4 percent drop after December’s 0.2 percent fall.

Market Analysis