The European stock markets experienced a positive close on Friday, with The Stoxx Europe 600 advancing by 0.53%. The Swiss Market Index registered a rise of 0.63%, while France's CAC saw an increase of 0.50%. In London, the FTSE climbed by 0.17%, and Germany's DAX surged with a gain of 0.75%. In a significant economic development, Germany's annual inflation rate saw a decrease to 1.6% in September.
This figure is notably lower compared to 1.9% in August and 2.3% in July, marking a notable shift in economic indicators. According to the Federal Statistical Office, the last time the annual inflation rate fell below this was in February 2021, when it recorded 1.5%. On the other side of the Channel, the UK reported a modest growth in monthly real gross domestic product (GDP) of 0.2% in August, following a period of no growth in July.
The Office for National Statistics highlighted that for the three months leading to August, real GDP also grew by an estimated 0.2%. Meanwhile, in Switzerland, the consumer sentiment index released by the Swiss Federal Statistical Office experienced a rise of 17 points in September compared to the same month last year, resulting in a current value of -34 points.
This upward trend indicates increased confidence regarding the economic outlook, personal financial situations, and opportunities for significant purchases. In corporate developments, BP announced on Friday its expectation for Q3 net debt to rise, attributing this to lower refining margins and the delayed realization of about $1 billion in divestment proceeds, now set for Q4.
The British oil and gas giant reported weakness in oil-products trading, forecasting a reduction in earnings between $400 million to $600 million due to decreased margins from crude processing. In a notable organizational change, Stellantis revealed that Doug Ostermann has been appointed as the new chief financial officer, effective immediately.
Ostermann was previously leading the company's operations in China and takes over the role from Natalie Knight, who is departing from the automaker. Additionally, Stellantis announced that CEO Carlos Tavares will retire in early 2026, prompting a search for his successor. Share prices for the European automaker reflected investor sentiment, closing 2.4% lower in Paris.
Furthermore, employees of Shell, based in London, have voiced concerns regarding the company's leadership in light of proposed job cuts. Bloomberg reported that internal communications revealed a decline in key metrics such as employee engagement and organizational leadership. A spokesperson from Shell acknowledged the significant transitions the company is undergoing due to the energy transition and mentioned that staff feedback is being actively considered.
Meanwhile, Novo Nordisk announced plans for expansion in India, focusing on increasing its workforce by collaborating with local artificial intelligence startups. An executive from the company shared expectations of a 16% workforce growth, bringing the total to 5,000 by 2025. In market movements, shares of the Danish pharmaceutical firm increased by 2.6% in London.
In legal news, Bayer, the German pharmaceutical powerhouse, was ordered by a US jury to pay $78 million to an individual who claimed that the company's Roundup weed killer led to his cancer diagnosis. Following this news, shares of Bayer closed 1.4% lower in Frankfurt. Lastly, PDD Holdings, headquartered in Dublin, faced scrutiny as its shopping website Temu received a request from the European Commission for information on measures taken against traders selling illegal products.
The Commission is also examining Temu's recommender systems and potential user data protection risks..