European bourses tracked moderately higher midday Wednesday as traders considered Germany's international trade picture and the outlook for central bank easing. Property, retail, and food stocks experienced gains, while oil and bank issues were left behind in the market's upturn. Investors kept a close eye on muted Wall Street futures, noting the choppy closes seen overnight on Asian markets, with shares in Shanghai plummeting by 6.6%.
According to Destatis, Germany's international trade surplus surged to 22.5 billion euros in August, an increase from July's 16.9 billion euros. German exports in August saw a slight rise of 0.1% year-over-year, whereas imports declined by 3.1%. Francois Villeroy de Galhau, the head of France's central bank and a member of the European Central Bank's governing council, indicated on franceinfo radio that a rate cut from the ECB is likely at its upcoming meeting on October 17.
The pan-continental Stoxx Europe 600 Index rose by 0.2% during mid-session trading. In sector-specific performance, the Stoxx Europe 600 Technology Index gained 0.2%, while the Stoxx 600 Banks Index fell by 0.3%. Simultaneously, the Stoxx Europe 600 Oil and Gas Index was down by 0.3%, contrasting with the upward movement of the Stoxx 600 Europe Food and Beverage Index, which climbed by 0.4%.
The REITE, a notable European REIT index, reported a rise of 1%, and the Stoxx Europe 600 Retail Index also recorded an incline of 0.5%. Focusing on national market indexes, Germany's DAX increased by 0.3%, mirrored by London's FTSE 100, which also rose by 0.3%. Paris's CAC 40 followed suit, also climbing by 0.3%, while Spain's IBEX 35 faced a setback, losing 0.2%. In terms of bond yields, benchmark 10-year German bonds saw a decrease, hovering around 2.23%.
Front-month North Sea Brent crude oil futures dipped by 0.7%, settling at $76.62 per barrel. The Euro Stoxx 50 volatility index fell by 1.6% to a reading of 19.96, indicating marginally below-average volatility expectations for European stock markets in the coming 30 days. A reading above 20 suggests choppier markets may be on the horizon, whereas a reading below 20 indicates a calmer trading environment..