S&P 500 and Nasdaq Composite Dropped 1% After December Jobs Report

Stock market indexes tumbled after a hotter-than-expected labor market report sent bond yields higher. 

The S&P 500 index decreased 1%, and the Nasdaq Composite fell 1.2% after the nonfarm payrolls expanded at a faster-than-expected pace in December, confirming the view that the Fed is likely to keep higher rates for longer. 

Nonfarm payrolls rose 256,000 in December, and the jobless rate held steady at 4.1%, and average hourly earnings advanced 3.9% from a year ago, according to the monthly report released by the U.S. Bureau of Labor Statistics. 

For the full year 2024, payrolls expanded at an average monthly pace of 186,000, totaling 2.2 million, lower than the 251,000 monthly rate totaling 3.0 million in 2023. 

The labor force participation rate, at 62.5%, was unchanged over the month and has remained in a narrow range of 62.5% to 62.7% since December 2023. 

The employment-population ratio, at 60.0%, changed little over the month and over the year.

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.8% to 5,867.83, the Nasdaq Composite fell 1.0% to 19,272.05, and the Russell 2000 index inched down by 0.4% to 2,238.93. 

The yield on 2-year Treasury notes edged higher to 4.36%, 10-year Treasury notes inched up to 4.76%, and 30-year Treasury bonds increased to 4.98%.

WTI crude oil increased $2.86 to $76.80 a barrel, and natural gas prices edged up 13 cents to $3.83 a thermal unit.

Gold increased by $10.70 to $2,680.61 an ounce, and silver rose by $0.15 to $30.24. 

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.03 to 109.13 and traded at a two-year high. 

U.S. Stock Movers 

Walgreens Boots Alliance Inc. increased 14.4% to $10.55 after the pharmacy chain operator reported better-than-expected quarterly results. 

Delta Ai Lines Inc. gained 7% to $65.71 after the company reported better-than-expected quarterly results, and the company guided strong earnings and free cash flow in 2025. 

Revenue in the December quarter increased to $1.7 billion from $1.3 billion, net income decreased to $843 million from $2.03 billion, and diluted earnings per share fell to $1.29 from $3.67 a year ago. 

The company guided continued increases in revenue and higher demand for its premium products in 2025 and estimated pre-tax income of more than $6 billion, earnings per share of at least $7.35, and free cash flow to surpass $4 billion. 

NYCFRIDAY

Europe Movers: Nordex, Philips, Ubisoft

Bond yields in the eurozone and the UK continued to approach multi-year highs amid weakening economic outlook, persistent political turmoil, and rising costs linked to he Ukraine war. 

The DAX index increased by 0.2% to 20,362.33; the CAC-40 index rose by 0.2% to 7,506.39; and the FTSE 100 index inched lower by 0.2% to 8,303.66. 

For the week, the DAX increased 2.2%, the CAC-40 index advanced 2.7%, and the FTSE 100 index gained 0.8%. 

The yield on 10-year German bonds edged higher to 2.55%, French bonds rose to 3.40%, the UK gilts increased to 4.84%, and Italian bonds rose to 3.73%.

The euro is expected to trade below parity with the U.S. dollar as the European Central Bank implements its four rate cuts this year, and the British pound is likely to sink to $1.05 amid worsening economic outlook. 

Ubisoft declined 7.5% to €11.66 after the French computer game company lowered guidance for fiscal 2025 and announced another delay in releasing the next version of its blockbuster franchise, Assassin's Creed. 

Nordex SE increased 1.7% to €11.38 after the German wind turbine maker reported four new orders from customers in Spain totaling 259 MW. 

Koninklijke Philips NV advanced 2.2% to €25.45 after the company announced a management shake-up and appointed new leaders for its international regions and precision diagnosis division. 

Europe Movers: Nordex, Philips, Ubisoft

Bond yields in the eurozone and the UK continued to approach multi-year highs amid weakening economic outlook, persistent political turmoil, and rising costs linked to he Ukraine war. 

The DAX index increased by 0.2% to 20,362.33; the CAC-40 index rose by 0.2% to 7,506.39; and the FTSE 100 index inched lower by 0.2% to 8,303.66. 

For the week, the DAX increased 2.2%, the CAC-40 index advanced 2.7%, and the FTSE 100 index gained 0.8%. 

The yield on 10-year German bonds edged higher to 2.55%, French bonds rose to 3.40%, the UK gilts increased to 4.84%, and Italian bonds rose to 3.73%.

The euro is expected to trade below parity with the U.S. dollar as the European Central Bank implements its four rate cuts this year, and the British pound is likely to sink to $1.05 amid worsening economic outlook. 

Ubisoft declined 7.5% to €11.66 after the French computer game company lowered guidance for fiscal 2025 and announced another delay in releasing the next version of its blockbuster franchise, Assassin's Creed. 

Nordex SE increased 1.7% to €11.38 after the German wind turbine maker reported four new orders from customers in Spain totaling 259 MW. 

Koninklijke Philips NV advanced 2.2% to €25.45 after the company announced a management shake-up and appointed new leaders for its international regions and precision diagnosis division. 

Bond Yields In Europe and UK Approach Multi-Year Highs, Pound and Euro Under Pressure

Stock market indexes in Europe struggled to advance, and bond yields remained elevated amid growing fiscal imbalances in France, the UK, and Germany. 

Benchmark indexes in Frankfurt, Paris, and Milan gained, but they fell in London as investors debated future rate path outlooks amid higher-for-longer interest rates in the U.S. 

The yield on 10-year UK gilts advanced to a fifteen-year high, and 30-year gilts rose to a 30-year high amid a weak economic growth outlook and an unabated rise in government debt. 

Bond yields in France also approached a 15-year high as the minority government struggles to finalize its fiscal budget, and the government debt is expected to increase to a new high above 114% of its gross domestic product. 

Moreover, bond yields in Germany, Spain, and Italy also approached 15-year highs as leading economies of the currency union struggle to contain ever-rising government debt amid high costs of imported energy and ongoing Ukraine war expenditure. 

On the economic front, French industrial output increased 0.2% in November from October, when it was down 0.3%, according to the latest data released by statistical office INSEE. 

French household consumption increased 0.3% in November from October when it was revised to fall 0.3%, a separate report by the statistical agency showed. 

In other economic news, Norway's consumer price inflation slowed in December to 2.2% from 2.4% in November, Statistics Norway reported Friday. 

The main downward pressure came from slower rates of inflation for food, non-alcoholic beverages, and housing and utilities. 

The overall inflation rate dropped to the lowest level since December 2020, and the rate for the full year 2024 dropped to a four-year low of 3.1%. 

Europe Indexes and Yields

The DAX index increased by 0.2% to 20,362.33; the CAC-40 index rose by 0.2% to 7,506.39; and the FTSE 100 index inched lower by 0.2% to 8,303.66. 

For the week, the DAX increased 2.2%, the CAC-40 index advanced 2.7%, and the FTSE 100 index gained 0.8%. 

The yield on 10-year German bonds edged higher to 2.55%, French bonds rose to 3.40%, the UK gilts increased to 4.84%, and Italian bonds rose to 3.73%.

The euro is expected to trade below parity with the U.S. dollar as the European Central Bank implements its four rate cuts this year, and the British pound is likely to sink to $1.05 amid worsening economic outlook. 

The euro edged lower to $1.03; the British pound inched lower to $1.224; and the U.S. dollar strengthened to 91.39 Swiss cents.

Brent crude decreased $2.05 to $78.97 a barrel, and the Dutch TTF natural gas fell by €1.63 to €43.57 per MWh. 

Europe Stock Movers

Ubisoft declined 7.5% to €11.66 after the French computer game company lowered guidance for fiscal 2025 and announced another delay in releasing the next version of its blockbuster franchise, Assassin's Creed. 

Nordex SE increased 1.7% to €11.38 after the German wind turbine maker reported four new orders from customers in Spain totaling 259 MW. 

Koninklijke Philips NV advanced 2.2% to €25.45 after the company announced a management shake-up and appointed new leaders for its international regions and precision diagnosis division. 

Bond Yields In Europe and UK Approach Multi-Year Highs, Pound and Euro Under Press

Stock market indexes in Europe struggled to advance, and bond yields remained elevated amid growing fiscal imbalances in France, the UK, and Germany. 

Benchmark indexes in Frankfurt, Paris, and Milan gained, but they fell in London as investors debated future rate path outlooks amid higher-for-longer interest rates in the U.S. 

The yield on 10-year UK gilts advanced to a fifteen-year high, and 30-year gilts rose to a 30-year high amid a weak economic growth outlook and an unabated rise in government debt. 

Bond yields in France also approached a 15-year high as the minority government struggles to finalize its fiscal budget, and the government debt is expected to increase to a new high above 114% of its gross domestic product. 

Moreover, bond yields in Germany, Spain, and Italy also approached 15-year highs as leading economies of the currency union struggle to contain ever-rising government debt amid high costs of imported energy and ongoing Ukraine war expenditure. 

On the economic front, French industrial output increased 0.2% in November from October, when it was down 0.3%, according to the latest data released by statistical office INSEE. 

French household consumption increased 0.3% in November from October when it was revised to fall 0.3%, a separate report by the statistical agency showed. 

In other economic news, Norway's consumer price inflation slowed in December to 2.2% from 2.4% in November, Statistics Norway reported Friday. 

The main downward pressure came from slower rates of inflation for food, non-alcoholic beverages, and housing and utilities. 

The overall inflation rate dropped to the lowest level since December 2020, and the rate for the full year 2024 dropped to a four-year low of 3.1%. 

Europe Indexes and Yields

The DAX index increased by 0.2% to 20,362.33; the CAC-40 index rose by 0.2% to 7,506.39; and the FTSE 100 index inched lower by 0.2% to 8,303.66. 

For the week, the DAX increased 2.2%, the CAC-40 index advanced 2.7%, and the FTSE 100 index gained 0.8%. 

The yield on 10-year German bonds edged higher to 2.55%, French bonds rose to 3.40%, the UK gilts increased to 4.84%, and Italian bonds rose to 3.73%.

The euro is expected to trade below parity with the U.S. dollar as the European Central Bank implements its four rate cuts this year, and the British pound is likely to sink to $1.05 amid worsening economic outlook. 

The euro edged lower to $1.03; the British pound inched lower to $1.224; and the U.S. dollar strengthened to 91.39 Swiss cents.

Brent crude decreased $2.05 to $78.97 a barrel, and the Dutch TTF natural gas fell by €1.63 to €43.57 per MWh. 

Europe Stock Movers

Ubisoft declined 7.5% to €11.66 after the French computer game company lowered guidance for fiscal 2025 and announced another delay in releasing the next version of its blockbuster franchise, Assassin's Creed. 

Nordex SE increased 1.7% to €11.38 after the German wind turbine maker reported four new orders from customers in Spain totaling 259 MW. 

Koninklijke Philips NV advanced 2.2% to €25.45 after the company announced a management shake-up and appointed new leaders for its international regions and precision diagnosis division. 

Nikkei Closed Down Second Consecutive Week, Household Spending Eased In November

Stock market indexes in Tokyo closed down for the third session in a row and extended weekly losses to the second consecutive week. 

The Nikkei 225 stock average fell 1%, and the broader TOPIX declined 0.8%. 

For the week, the Nikkei 225 declined 1.3%, and the broader TOPIX fell 2.2%.

Market sentiment was cautious in Tokyo amid rate path uncertainties and potential slowdown in exports to China amid rising trade tensions with the U.S. 

Japan's Real Household Spending Shrank In November 

On the economic front, Japan's household spending and income, adjusted for inflation, decline in November as consumers closely watched spending amid rising costs of food and energy. 

The average household spending, for a family of two or more, declined 0.4% in real terms to 295,518 yen, or $1,900, according to a report released by the Ministry of Internal Affairs and Communications on Friday. 

In nominal terms, household spending rose 3% from a year ago. 

Consumers restricted spending to basic items and avoided discretionary spending for the third consecutive month. 

Spending on apparel and footwear declined 13.7%, furniture and electric appliances dropped 13.8%, food items decreased 0.6%, and spending for recreation and leisure activities eased 2.9%. 

However, housing-related spending, including kitchen renovation, soared 18.7%, an increase for the first time in four months. 

Meanwhile, the real average household income, adjusted for inflation, increased 0.7% from a year ago to 514,409 yen. 

The nominal income advanced 4.1% from a year ago, partly because of winter bonuses. 

Japan Stock Movers 

The Nikkei 225 Stock Average declined 1.1% to 39,190.40, and the broader TOPIX dropped 0.8% to 2,714.12. 

Stock market indexes declined following the losses in the shipbuilding, power, and insurance sectors. 

Tech stocks advanced in choppy trading amid growing worries of rising interest rates in the U.S., dampening appetite for riskier investments. 

Advantest Corp. gained 5% to ¥10,380.0, Tokyo Electron decreased 0.1% to ¥27,025.0, and Disco Corp. fell 1.4% to ¥48,000.0. 

Mitsui Mining & Smelting Co. Ltd. dropped 6.8% to ¥4,524.0, Tokyo Electric Power Company Holding decreased 1.7% to ¥434.80, and Furukawa Electric rose 3.4% to ¥7,259.0. 

Fast Retailing declined 6.5% to ¥48,700.0 after the apparel retailer reported better-than-expected revenue and profit in the December quarter, but results were weaker than expected in China. 

Nikkei Closed Down Second Consecutive Week, Household Spending Eased In November

Stock market indexes in Tokyo closed down for the third session in a row and extended weekly losses to the second consecutive week. 

The Nikkei 225 stock average fell 1%, and the broader TOPIX declined 0.8%. 

For the week, the Nikkei 225 declined 1.3%, and the broader TOPIX fell 2.2%.

Market sentiment was cautious in Tokyo amid rate path uncertainties and potential slowdown in exports to China amid rising trade tensions with the U.S. 

Japan's Real Household Spending Shrank In November 

On the economic front, Japan's household spending and income, adjusted for inflation, decline in November as consumers closely watched spending amid rising costs of food and energy. 

The average household spending, for a family of two or more, declined 0.4% in real terms to 295,518 yen, or $1,900, according to a report released by the Ministry of Internal Affairs and Communications on Friday. 

In nominal terms, household spending rose 3% from a year ago. 

Consumers restricted spending to basic items and avoided discretionary spending for the third consecutive month. 

Spending on apparel and footwear declined 13.7%, furniture and electric appliances dropped 13.8%, food items decreased 0.6%, and spending for recreation and leisure activities eased 2.9%. 

However, housing-related spending, including kitchen renovation, soared 18.7%, an increase for the first time in four months. 

Meanwhile, the real average household income, adjusted for inflation, increased 0.7% from a year ago to 514,409 yen. 

The nominal income advanced 4.1% from a year ago, partly because of winter bonuses. 

Japan Stock Movers 

The Nikkei 225 Stock Average declined 1.1% to 39,190.40, and the broader TOPIX dropped 0.8% to 2,714.12. 

Stock market indexes declined following the losses in the shipbuilding, power, and insurance sectors. 

Tech stocks advanced in choppy trading amid growing worries of rising interest rates in the U.S., dampening appetite for riskier investments. 

Advantest Corp. gained 5% to ¥10,380.0, Tokyo Electron decreased 0.1% to ¥27,025.0, and Disco Corp. fell 1.4% to ¥48,000.0. 

Mitsui Mining & Smelting Co. Ltd. dropped 6.8% to ¥4,524.0, Tokyo Electric Power Company Holding decreased 1.7% to ¥434.80, and Furukawa Electric rose 3.4% to ¥7,259.0. 

Fast Retailing declined 6.5% to ¥48,700.0 after the apparel retailer reported better-than-expected revenue and profit in the December quarter, but results were weaker than expected in China. 

Hang Seng Index Extends Weekly Losses to 4% and CSI 300 Index Falls 5%

Stock market indexes in China and Hong Kong extended weekly losses ahead of the start of earnings season. 

The Hang Seng Index fell 0.8%, and the CSI 300 index dropped 0.7% amid weak market sentiment and a lack of visible catalysts for domestic economic growth. 

Sentiment for stocks remained cautious after policymakers failed to release concrete steps to much-touted fiscal stimulus measures and growing worries about trade ties with the U.S. 

The People's Bank of China halted the purchase of Chinese government bonds, citing strong demand from investors for bonds, a move widely seen as an attempt to shore up the weakening yuan. 

The Chinese yuan in offshore trading declined and traded around a 16-year low of 7.35 against the U.S. dollar, as Chinese exporters kept a larger share of sales in overseas accounts. 

Tech stocks remained under pressure for the second week in a row after the U.S. Department of Defense expanded its list of Chinese companies with military ties, including Tencent Holdings, Cosco Shipping, and CATL. 

China Stock Movers 

The Hang Seng index declined 0.8% to 19,081.48, and the mainland-focused CSI 300 index fell 0.7% to 3,750.63. 

China Life Insurance, Li Ning, CATL, and Lenovo dropped between 3% and 5% amid weak market sentiment. 

Bloks Group soared more than 45% to HK$3,750.63 after the toy maker raised HK$1.6 billion through the sale of 27.7 million in an initial public offering. 

The company priced its offering at HK $60.25 per share. 

Numans Health Food Holdings declined more than 8% to HK $0.74 after the company priced its initial public offering at HK $0.80 per share. 

The company raised gross HK$200 million and net HK$120.5 million after selling 250 million shares in its public offering. 

Suzhou Seapax Technologies jumped more than 370% to 20.72 yuan after the maker of chromatography materials priced its initial public offering. 

The company sold 49.97 million shares in its initial public offering priced at 4.32 yuan and raised gross proceeds of 215 million yuan. 

Juneway Electronic jumped 250% to 38.10 yuan after the company priced its initial public offering at 10.40 per share and raised 693 million yuan through the sale of 66.6 million shares. 

Hang Seng Index Extends Weekly Losses to 4% and CSI 300 Index Falls 5%

Stock market indexes in China and Hong Kong extended weekly losses ahead of the start of earnings season. 

The Hang Seng Index fell 0.8%, and the CSI 300 index dropped 0.7% amid weak market sentiment and a lack of visible catalysts for domestic economic growth. 

Sentiment for stocks remained cautious after policymakers failed to release concrete steps to much-touted fiscal stimulus measures and growing worries about trade ties with the U.S. 

The People's Bank of China halted the purchase of Chinese government bonds, citing strong demand from investors for bonds, a move widely seen as an attempt to shore up the weakening yuan. 

The Chinese yuan in offshore trading declined and traded around a 16-year low of 7.35 against the U.S. dollar, as Chinese exporters kept a larger share of sales in overseas accounts. 

Tech stocks remained under pressure for the second week in a row after the U.S. Department of Defense expanded its list of Chinese companies with military ties, including Tencent Holdings, Cosco Shipping, and CATL. 

China Stock Movers 

The Hang Seng index declined 0.8% to 19,081.48, and the mainland-focused CSI 300 index fell 0.7% to 3,750.63. 

China Life Insurance, Li Ning, CATL, and Lenovo dropped between 3% and 5% amid weak market sentiment. 

Bloks Group soared more than 45% to HK$3,750.63 after the toy maker raised HK$1.6 billion through the sale of 27.7 million in an initial public offering. 

The company priced its offering at HK $60.25 per share. 

Numans Health Food Holdings declined more than 8% to HK $0.74 after the company priced its initial public offering at HK $0.80 per share. 

The company raised gross HK$200 million and net HK$120.5 million after selling 250 million shares in its public offering. 

Suzhou Seapax Technologies jumped more than 370% to 20.72 yuan after the maker of chromatography materials priced its initial public offering. 

The company sold 49.97 million shares in its initial public offering priced at 4.32 yuan and raised gross proceeds of 215 million yuan. 

Juneway Electronic jumped 250% to 38.10 yuan after the company priced its initial public offering at 10.40 per share and raised 693 million yuan through the sale of 66.6 million shares. 

India Movers: Adani Wilmar, GTPL Hathway, IRDEA, Mahanagr Gas, Phoenix Mills, Polypex Corp, TCS

The first batch of corporate earnings offered a mixed view of the economic landscape, and investor sentiment remained cautious amid weak earnings growth expectations. 

The Sensex index decreased by 0.5% to 77,211.94, and the Nifty index fell by 0.7% to 23,368.20. 

On the Mumbai stock exchange, 34 stocks traded at their 52-week highs, and 192 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.81%, and the Indian rupee traded around a record low of 85.87 against the U.S. dollar.

Tata Elxsi Ltd. declined 6.7% to ₹6,007 after the company reported weaker-than-expected December quarter results. 

Mahanagar Gas Ltd. increased 0.3% to ₹1,274.40 after the company secured a 26% increase in domestic gas allocation. 

Polyplex Corp. Ltd. decreased 2.7% to ₹1,314.75, and the company announced a ₹558 crore investment plan to manufacture polyester film used in food packaging. 

IREDA fell 2.8% to ₹210.0, despite the company reporting a 27% increase in profit in the fiscal third quarter ending in December. 

Adani Wilmar Ltd. decreased 8.9% to ₹295.45 as Adani Group plans to sell a 20% stake in the company in an open offer with a floor price of ₹275 per share. 

GTPL Hathway Ltd. declined 9% to ₹134.75 after the internet service provider reported a 57% plunge in earnings in its fiscal third quarter. 

TCS gained 4.5% to ₹4,220.40 after the business and technology service provider said fiscal third quarter profit increased 12% from a year ago to ₹12,380 crore. 

The operating revenue increased 5.6% to ₹63,973 crore from ₹60,583 in the quarter a year ago. 

The company's Board of Directors announced a cash dividend of ₹76 per share, including a special dividend of ₹66 per share.

Phoenix Mills Ltd. advanced 1.2% to ₹1,659.75 after the real estate company reported a strong rise in consumption at its malls in the fiscal third quarter. 

Retail sales at the company-operated malls increased 21% from a year ago to ₹3,998 crore, and occupancy was 69% at the end of 2024. 

The St. Regis Mumbai's occupancy rate in the quarter increased to 84% from 82%, and the average room rate increased by 11% to ₹22,343, and revenue per available room advanced 15% to ₹18,855.

India Movers: Adani Wilmar, GTPL Hathway, IRDEA, Mahanagr Gas, Phoenix Mills, Polypex Corp, TCS

The first batch of corporate earnings offered a mixed view of the economic landscape, and investor sentiment remained cautious amid weak earnings growth expectations. 

The Sensex index decreased by 0.5% to 77,211.94, and the Nifty index fell by 0.7% to 23,368.20. 

On the Mumbai stock exchange, 34 stocks traded at their 52-week highs, and 192 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.81%, and the Indian rupee traded around a record low of 85.87 against the U.S. dollar.

Tata Elxsi Ltd. declined 6.7% to ₹6,007 after the company reported weaker-than-expected December quarter results. 

Mahanagar Gas Ltd. increased 0.3% to ₹1,274.40 after the company secured a 26% increase in domestic gas allocation. 

Polyplex Corp. Ltd. decreased 2.7% to ₹1,314.75, and the company announced a ₹558 crore investment plan to manufacture polyester film used in food packaging. 

IREDA fell 2.8% to ₹210.0, despite the company reporting a 27% increase in profit in the fiscal third quarter ending in December. 

Adani Wilmar Ltd. decreased 8.9% to ₹295.45 as Adani Group plans to sell a 20% stake in the company in an open offer with a floor price of ₹275 per share. 

GTPL Hathway Ltd. declined 9% to ₹134.75 after the internet service provider reported a 57% plunge in earnings in its fiscal third quarter. 

TCS gained 4.5% to ₹4,220.40 after the business and technology service provider said fiscal third quarter profit increased 12% from a year ago to ₹12,380 crore. 

The operating revenue increased 5.6% to ₹63,973 crore from ₹60,583 in the quarter a year ago. 

The company's Board of Directors announced a cash dividend of ₹76 per share, including a special dividend of ₹66 per share.

Phoenix Mills Ltd. advanced 1.2% to ₹1,659.75 after the real estate company reported a strong rise in consumption at its malls in the fiscal third quarter. 

Retail sales at the company-operated malls increased 21% from a year ago to ₹3,998 crore, and occupancy was 69% at the end of 2024. 

The St. Regis Mumbai's occupancy rate in the quarter increased to 84% from 82%, and the average room rate increased by 11% to ₹22,343, and revenue per available room advanced 15% to ₹18,855.

Europe Movers: B&M Value, Marks & Spencer, Tesco

The Euro Area retail sales struggled to advance in November amid high costs of living and elevated interest rates. 

Germany's trade surplus shrank after exports fell faster than imports. 

The DAX index decreased by 0.2% to 20,294.40; the CAC-40 index rose by 0.2% to 7,464.24; and the FTSE 100 index inched higher by 0.6% to 8,304.35. 

The yield on 10-year German bonds edged higher to 2.52%, French bonds rose to 3.38%, the UK gilts increased to 4.83%, and Italian bonds rose to 3.70%.

Tesco PLC declined 1.8% to 363.56 pence despite the grocery retailer reporting strong sales growth in the holiday period. 

Sales in the third quarter ending on December 23 increased 2.8%, powered by a 3.8% rise in the U.K. and 2.8% in Central Europe.

Sales in the four-week holiday period ending on January 4, 2025, increased 3.8%, powered by a 4.1% advance in the U.K. and a 4.7% jump in Central Europe. 

Food sales in the UK rose 4.7%, and overall online sales jumped 10% in the quarter. 

The company reiterated its adjusted operating earnings estimate in the fiscal year 2025 to £2.9 billion and free cash flow from its retail operation between £1.4 billion and £1.8 billion. 

Marks & Spencer Group Plc plunged 7.4% to 363.56 pence after the retailer reported higher-than-expected holiday period sales, but the company's warnings about costs and headwinds in the months ahead dragged the stock down. 

Group sales in the quarter ending on December 28 increased 5.6% to £4.06 billion, driven by an 8.7% increase in food sales to £2.6 billion and a 1% rise in apparel, home, and beauty sales to £1.3 billion. 

UK and Ireland sales advanced 5.9% to £3.9 billion, and international sales dropped 2.8% to £178 million. 

B&M Value Retail SA dropped 10.5% to 307.38 pence after the discount retailer lowered its annual earnings outlook. 

The variety store tightened its adjusted operating earnings outlook range to between £620 million and £650 million from the previous range between £620 million and £660 million. 

Sales in the fiscal third quarter from a year ago increased 2.8% to £1.4 billion in the U.K. and 12.5% to £164 million in France.

Comparable same store sales in the UK in the fiscal third quarter declined 2.8%, but the growth picked up in December 2024 and retained its momentum in January 2025.  

Comparable same store sales in France in the quarter was 3.8%. 

The company said it is on track to open 73 new stores in the current fiscal year, including 45 B&M in the UK, 11 B&M in France, and 17 Heron Foods stores, and estimated additional 45 new B&M UK stores in fiscal 2026. 

The discount retailer declared 15 pence per share dividend to shareholders on record on January 17 and payable on February 14.

Europe Movers: B&M Value, Marks & Spencer, Tesco

The Euro Area retail sales struggled to advance in November amid high costs of living and elevated interest rates. 

Germany's trade surplus shrank after exports fell faster than imports. 

The DAX index decreased by 0.2% to 20,294.40; the CAC-40 index rose by 0.2% to 7,464.24; and the FTSE 100 index inched higher by 0.6% to 8,304.35. 

The yield on 10-year German bonds edged higher to 2.52%, French bonds rose to 3.38%, the UK gilts increased to 4.83%, and Italian bonds rose to 3.70%.

Tesco PLC declined 1.8% to 363.56 pence despite the grocery retailer reporting strong sales growth in the holiday period. 

Sales in the third quarter ending on December 23 increased 2.8%, powered by a 3.8% rise in the U.K. and 2.8% in Central Europe.

Sales in the four-week holiday period ending on January 4, 2025, increased 3.8%, powered by a 4.1% advance in the U.K. and a 4.7% jump in Central Europe. 

Food sales in the UK rose 4.7%, and overall online sales jumped 10% in the quarter. 

The company reiterated its adjusted operating earnings estimate in the fiscal year 2025 to £2.9 billion and free cash flow from its retail operation between £1.4 billion and £1.8 billion. 

Marks & Spencer Group Plc plunged 7.4% to 363.56 pence after the retailer reported higher-than-expected holiday period sales, but the company's warnings about costs and headwinds in the months ahead dragged the stock down. 

Group sales in the quarter ending on December 28 increased 5.6% to £4.06 billion, driven by an 8.7% increase in food sales to £2.6 billion and a 1% rise in apparel, home, and beauty sales to £1.3 billion. 

UK and Ireland sales advanced 5.9% to £3.9 billion, and international sales dropped 2.8% to £178 million. 

B&M Value Retail SA dropped 10.5% to 307.38 pence after the discount retailer lowered its annual earnings outlook. 

The variety store tightened its adjusted operating earnings outlook range to between £620 million and £650 million from the previous range between £620 million and £660 million. 

Sales in the fiscal third quarter from a year ago increased 2.8% to £1.4 billion in the U.K. and 12.5% to £164 million in France.

The company said it is on track to open 73 new stores in the current fiscal year, including 45 B&M in the UK, 11 B&M in France, and 17 Heron Foods stores, and estimated additional 45 new B&M UK stores in fiscal 2026. 

The discount retailer declared 15 pence per share dividend to shareholders on record on January 17 and payable on February 14.

Euro Area Retail Sales Struggled to Advance, Germany's Industrial Output and Exports Lacked Momentum

European markets traded down in thin volume as investors debated future rate paths amid rising bond yields. 

Benchmark indexes in Frankfurt, Paris, Milan, and London struggled to stay above the flatline as investors debated the outlook of exports from the currency union in the future. 

The European Union goods exported to the U.S. are likely to face higher tariffs, which could lower volume in the months ahead, adding to a list of worries in the region. 

Bond yields in the eurozone advanced to fifteen-year highs, matching the rates seen seven months ago, following the surge in yield in the U.S. Treasury notes. 

Germany's Trade Surplus Edged Lower In November 

Germany's exports and imports declined in November, resulting in a decline in an annual trade surplus, according to the latest data released by the Federal Statistical Office, or Destatis. 

Exports fell 3.5% from a year ago to €127.3 billion, and imports declined 2.9% to €107.9 billion, resulting in a decline in trade surplus of 6.6% to €19.7 billion from €21.1 billion a year ago. 

On a monthly basis, exports increased for the first time in three months, and most German goods reached the U.S., China, and the U.K. 

Exports to the U.S. increased 14.5% from the previous month to €14.0 billion, to China decreased by 4.2% to €6.6 billion, and to the UK rose by 8.6% to €7.2 billion. 

Most imports to Germany arrived from China, the U.S., and the U.K., as the largest economy in the eurozone imported fewer commodities and intermediate goods. 

Imports from China declined 3.1% from the previous month to €13.4 billion, from the U.S. fell by 3.7% to €7.2 billion, and from the U.K. fell by 4.7% to €2.8 billion. 

Calendar and seasonally adjusted goods worth €67.8 billion were exported to the member states of the European Union, and €55.0 billion were imported from the region. 

Germany's Industrial Output Lacked Momentum in November 

Germany's industrial output advanced from the previous month but fell from the previous year in November, according to a report released by Destatis. 

Calendar adjusted Industrial output, after adjusting for inflation, which includes manufacturing, energy, and construction, advanced 1.5% from October but fell 2.8% from a year ago. 

Industrial production, which excludes energy and construction, increased 1% from the previous month but fell 3.2% from a year ago. 

Energy production advanced 1.5% from the previous month but declined 0.4% from a year ago. 

Eurozone Retail Sales Struggled to Advance in November 

Retail sales in the Euro Area rose less than expected in November amid elevated interest rates and high cost of living. 

Retail sales volume rose 0.1% on a monthly basis in November after a 0.3% decline in the previous month, Eurostat reported Thursday. 

Automotive fuel sales rose 0.8% compared to a decline of 0.4%; food, drinks, and tobacco sales edged up 0.1% from 0.2%, but non-food sales edged down 0.6%, matching the rate in the previous month, respectively. 

Among the largest economies in the region, retail sales increased 0.3% in France but fell 0.6% in Germany and Spain. 

The annual increase in retail sales slowed to 1.2% from 2.1% in October. 

Europe Indexes and Yields

The DAX index decreased by 0.2% to 20,294.40; the CAC-40 index rose by 0.2% to 7,464.24; and the FTSE 100 index inched higher by 0.6% to 8,304.35. 

The yield on 10-year German bonds edged higher to 2.52%, French bonds rose to 3.38%, the UK gilts increased to 4.83%, and Italian bonds rose to 3.70%.

The euro edged lower to $1.03; the British pound inched lower to $1.228; and the U.S. dollar eased to 91.18 Swiss cents.

Brent crude decreased $0.08 to $76.07 a barrel, and the Dutch TTF natural gas fell by €0.36 to €44.73 per MWh. 

Europe Stock Movers

Tesco PLC declined 1.8% to 363.56 pence despite the grocery retailer reporting strong sales growth in the holiday period. 

Marks & Spencer Group Plc plunged 7.4% to 363.56 pence after the retailer reported higher-than-expected holiday period sales, but the company's warnings about costs and headwinds in the months ahead dragged the stock down. 

Group sales in the quarter ending on December 28 increased 5.6% to £4.06 billion, driven by an 8.7% increase in food sales to £2.6 billion and a 1% rise in apparel, home, and beauty sales to £1.3 billion. 

UK and Ireland sales advanced 5.9% to £3.9 billion, and international sales dropped 2.8% to £178 million. 

B&M Value Retail SA dropped 10.5% to 307.38 pence after the discount retailer lowered its annual earnings outlook. 

The variety store tightened its adjusted operating earnings outlook range to between £620 million and £650 million from the previous range between £620 million and £660 million. 

Sales in the fiscal third quarter from a year ago increased 2.8% to £1.4 billion in the U.K. and 12.5% to £164 million in France.