Market Update
Europe Movers: Alstom, Compass Group, Credit Agricole, Melrose Industries, TUI AG
Bridgette Randall
10 May, 2023
Frankfurt
Alstom SA decreased 2.5% to €22.84 after the transportation company delayed its mid-year targets by a year and blamed it on macroeconomic conditions.
Revenue in the full-year 2023 ending in March increased 7% to €16.5 billion and adjusted net profit increased to €292 million from a loss of €173 million a year ago.
Credit Agricole SA increased 5.5% to €11.76 after the French lender reported record first quarter revenue.
Reported group revenue increased 0.5% to €8.9 billion and net income rose 23.6% to €1.7 billion.
Loans issued in the quarter by regional banks declined 6.2% driven by a 14.3% fall in home loans as higher rates and elevated home prices kept buyers away from the market.
Credit Agricole SA, standalone revenue in the fiscal year 2023 increased to €6.1 billion from €5.6 billion and net income rose to €1.2 billion from €0.57 billion and earnings per share increased to 36 cents from 15 cents a year ago.
TUI AG declined 3.6% to 541.80 pence after the tour operator reported a narrower underlying operating loss.
Revenue in the second quarter increased to €3.1 billion from €2.1 billion and the group's loss expanded to €326.2 million from €321.4 million and loss per share increased to €1.26 from €1.21 a year ago.
The travel company said summer and winter season bookings increased to 12.9 million and forecasted air travel capacity for summer travel to match 2019 level.
Melrose Industries PLC increased 3.5% to 439.30 pence after the company said revenues are "materially ahead of expectations."
The company said in its trading update revenue in the first four months to April increased 19% and adjusted operating margin increased about 10% from a year ago.
The company forecasted full-year 2023 revenue between £3.35 billion and £3.45 billion and adjusted operating profit between £340 million and £360 million.
Compass Group Plc increased 1.7% to 2,100 pence after the UK-based catering company reported strong first-half results and lifted its annual outlook.
Revenue in the first-half ending in March increased 36% to £15.7 billion from £11.5 billion and net income attributable to stockholders increased to £633 million from £477 million and earnings per share rose to 36.4 pence from 26.7 pence a year ago.
European Markets Rest Near Recent Highs, BoE Expected to Lift Rates
Bridgette Randall
10 May, 2023
Frankfurt
European markets drifted lower and investors reacted to corporate results.
Benchmark indexes in Frankfurt, Paris and London traded lower but hovered near record highs as investors worried about future rate paths.
Despite multiple interest rate hikes and four-decade high inflation, corporate profits have met or exceeded investor expectations.
Travel and leisure companies are reporting stronger-than-expected sales and energy companies are reporting weaker revenues and earnings after record results in the previous year.
The Bank of England is set to increase its key lending rate by 25 basis points to 4.5% as inflation stayed near 10% in March.
Investors across Europe are worried that rapid rise in interest rates are feeding into the broader economy and negatively impacting the commercial real estate sector.
Banks in the region are also in focus on the worries that higher rates have caused significant losses, though unrealized, in government securities held by banks of all sizes.
Investors are also awaiting the latest report on the U.S. consumer price inflation later in the day with expectations running around 5% and core inflation easing slightly to 5.5%.
Europe Indexes & Yields
The DAX index decreased 0.3% or 40.68 points to 15,914.85, the CAC-40 index fell 0.2% or 15.72 points to 7,380.71 and the FTSE 100 index declined 0.2% or 15.52 to 7,748.67.
For the year so far to the close of Tuesday, the DAX index increased 13.1%, the CAC-40 index 11.9% and the FTSE 100 index about 2.6%.
The yield on 10-year German Bunds inched up to 2.31%, French bonds traded slightly higher to 2.92%, the UK gilts inched higher to 3.84% and Italian bonds advanced to 4.24%.
The euro edged higher to $1.095, the British pound to $1.262 and the Swiss franc to 89.09 cents.
Brent crude fell 77 cents to $76.67 a barrel and the Dutch TTF natural gas decreased €0.40 to €36.55 per MWh.
Europe Stock Movers
Alstom SA decreased 2.5% to €22.84 after the transportation company delayed its mid-year targets by a year and blamed it on macroeconomic conditions.
Revenue in the full-year 2023 ending in March increased 7% to €16.5 billion and adjusted net profit increased to €292 million from a loss of €173 million a year ago.
Credit Agricole SA increased 5.5% to €11.76 after the French lender reported record first quarter revenue.
Reported group revenue increased 0.5% to €8.9 billion and net income rose 23.6% to €1.7 billion.
Loans issued in the quarter by regional banks declined 6.2% driven by a 14.3% fall in home loans as higher rates and elevated home prices kept buyers away from the market.
Credit Agricole SA, standalone revenue in the fiscal year 2023 increased to €6.1 billion from €5.6 billion and net income rose to €1.2 billion from €0.57 billion and earnings per share increased to 36 cents from 15 cents a year ago.
TUI AG declined 3.6% to 541.80 pence after the tour operator reported a narrower underlying operating loss.
Revenue in the second quarter increased to €3.1 billion from €2.1 billion and the group's loss expanded to €326.2 million from €321.4 million and loss per share increased to €1.26 from €1.21 a year ago.
The travel company said summer and winter season bookings increased to 12.9 million and forecasted air travel capacity for summer travel to match 2019 level.
Melrose Industries PLC increased 3.5% to 439.30 pence after the company said revenues are "materially ahead of expectations."
The company said in its trading update revenue in the first four months to April increased 19% and adjusted operating margin increased about 10% from a year ago.
The company forecasted full-year 2023 revenue between £3.35 billion and £3.45 billion and adjusted operating profit between £340 million and £360 million.
Compass Group Plc increased 1.7% to 2,100 pence after the UK-based catering company reported strong first-half results and lifted its annual outlook.
Growing List of Market Worries Now Include Debt Ceiling Uncertainties
Barry Adams
09 May, 2023
New York City
Stocks remained in the downward trend ahead of two key inflation reports over the next two days.
Stocks remained in the downward trend ahead of two key inflation reports over the next two days and debt ceiling uncertainty.
Benchmark indexes traded sideways ahead of the consumer price inflation report Wednesday and producer price inflation report on Thursday.
Debt ceiling uncertainty and the looming Federal government shutdown was added to a list of market worries ranging from future rate path, economic slowdown, and regional banking worries.
Stocks have been on the defensive on a growing realization that the regional banking crisis is not likely to go away soon, despite the drumbeat of assurances offered by the Federal Reserve and Treasury officials.
The Federal Reserve is struggling to tackle high inflation while avoiding the economy slipping into a deeper slowdown and healthy labor market.
Despite the ten rate hikes over the last fourteen months, inflation is still significantly higher than the Fed's preferred target rate of 2%.
Moreover, higher rates have dented balance sheets of banks after Treasury securities declined to reflect higher yields, forcing banks to slow lending to customers and shore up weakening capital bases.
Treasury Secretary Janet Yellen confirmed in an interview with CNBC that there are no plans to halt targeted short selling in regional bank stocks.
However, the U.S. Treasury is open to working with the Congress in expanding insurance limit for bank deposits, added Yellen.
With no policy change in the immediate future and interest rates are likely to remain elevated, the decline in regional bank stocks is likely to continue.
KRE, SPDR Regional Banking ETF, declined 2% in Monday's trading and extended this year's losses to 35.6%.
New York Fed President John Williams reminded investors that it will take time for the Federal Reserve's policy steps to lower inflation and "return it to our target rate of 2%."
In overseas trading European markets traded lower and the Hang Seng Index in Hong Kong declined 2% after tech stocks led the decliners.
China's export growth slowed in April and trade surplus soared from a year ago but imports declined for the seventh month in a row reflecting uneven post-Covid economy recovery.
China's Export Growth Slowed In April
China's international trade data showed a sustained recovery for its goods for the second month in a row but weak demand at home led to the decline in imports for the seventh month in a row.
China's exports rose 8.5% from a year ago in April to $295.42 billion, slower than the 14.5% rise in March according to the latest data released by the General Administration of Customs of China.
Imports declined 7.9% in April to $205.21 billion, down from a 1.4% decline in March.
Trade surplus in April soared to $90.21 billion from $49.47 billion a year ago.
On a monthly basis, exports decreased 6.4% and imports fell 9.7%.
U.S. Indexes & Yields
The S&P 500 index decreased 0.5% to 4,119.17 and the Nasdaq Composite fell 0.6% to 12,179.55.
The yield on 2-year Treasury notes hovered at 4.00%, 10-year Treasury notes edged up to 3.499% and 30-year Treasury bonds held at 3.82%.
Crude oil fell 75 cents to $72.42 a barrel and natural gas prices rose 3 cents to $2.25 a thermal unit.
U.S. Stock Movers
PayPal Holdings Inc decreased 7.2% to $70.50 after the payment services provider said net revenue in the first quarter increased 9% to $7.04 billion from $6.5 billion and net income increased 56% to $795 million from $509 million and diluted earnings per share increased to 70 cents from 43 cents a year ago.
Total payment volume soared 10% from a year ago to $354.5 billion from $322.9 billion and payment transactions rose 13% to 5.8 billion.
Total active accounts on a trailing 12 months basis increased 1% to 433 million and payment transactions per active accounts increased 13% to 53.1 million.
In the first quarter, the company repurchased approximately 19 million of its shares for $1.4 billion and repurchased approximately 48 million shares for $4.1 billion.
Lucid Group plunged 9.7% to $6.98 after the luxury electric vehicle marker said revenue in the first quarter increased to $149.4 million from $57.7 million and net loss widened to $779.5 million from $604.7 million and diluted loss per share increased to 43 cents from 36 cents a year ago.
The electric vehicle company produced 2,314 units and delivered 1,406 units. The company said liquidity at the end of the quarter was $4.1 billion.
European Markets Hover Near Record Highs
European stocks traded near flat-line as investors looked ahead to inflation reports from the U.S.
Benchmark indexes traded lower and investors mulled over rate path economic slowdown amid persistent inflation worries.
U.S. consumer price inflation report is scheduled to be released on Wednesday followed by the producer price inflation report on Thursday.
Investors are hoping that lower crude oil and natural gas prices will lower headline inflation in April and core inflation will also remain flat near 4.5%.
On Thursday the Bank of England is expected to announce its interest rate decision and investors are anticipating a rate increase of at least 25 basis points as the island nation struggles with high inflation driven by food and energy prices.
Despite challenging economic data, European market indexes are trading near record high levels and corporations are reporting record sales and earnings.
French Trade Deficit Improved On Lower Energy Costs
The French trade deficit declined to €8 billion in March, following a downwardly revised deficit of €9.3 billion in February, the Ministry of Economy and Finance reported Tuesday.
Imports fell 3.1% from the previous month to a nearly one year low of €50.5 billion and exports decreased 1.2% to €58.5 billion.
Trade deficit improved because of the sharp fall in energy import prices for the second quarter in a row.
Trade deficit in the first quarter improved to €29.8 billion from €33.5 billion a year ago after exports increased to €151.2 billion from €141.0 billion and imports jumped to €180.9 billion from €174.5 billion a year ago.
Europe Indexes & Yields
The DAX index decreased 0.3% or 44.21 points to 15,908.29, the CAC-40 index fell 0.9% or 61.80 points to 7,379.11 and the FTSE 100 index fell 0.5% or 35.26 to 7,743.21.
For the year so far to the close of Monday, the DAX index increased 13%, the CAC-40 index 11.4% and the FTST 100 index about 2.4%.
The yield on 10-year German Bunds inched up to 2.30%, French bonds traded slightly higher to 2.90%, the UK gilts inched higher to 3.80% and Italian bonds advanced to 4.23%.
The euro edged higher to $1.095, the British pound to $1.264 and the Swiss franc to 89.14 cents.
Brent crude fell 56 cents to $76.44 a barrel and the Dutch TTF natural gas decreased €0.52 to €36.36 per MWh.
Europe Stock Movers
Fresenius Medical SE increased 6.9% to €27.21 after the German dialysis company reported adjusted earnings that were ahead of expectations.
Revenue in the first quarter increased 3.4% to €4.7 billion and net income fell 45.1% to €86 million from €157 million and basic earnings per share declined to 29 cents from 54 cents a year ago.
Adjusted earnings per share, which excludes the U.S. Provider Relief Funding and Ukraine war related items among other adjustments, declined to 53 cents from 67 cents a year ago.
Fresenius forecasted 2023 annual revenue "to grow at a low to mid-single digit percentage rate" from €19.39 billion and operating income to remain "flat or decline by up to a high-single digit percentage rate" from €1.54 billion.
Banco BPM SpA increased 4.99% to €3.95 after the Italian bank reported stronger-than-expected earnings and the bank lifted its annual outlook for 2023 and 2024.
Net interest income in the first quarter increased 38.9% to 779.28 million from 561.18 million and net income advanced 49.2% to 265.32 million from 177.80 million a year ago.
The company forecasted 2023 annual earnings of €1.1 billion or 75 cents from the previous estimate of 60 cents and 2024 earnings of €1.4 billion and earnings per share of 90 cents from the previous estimate of 75 cents.
The company also announced its plan to distribute dividends of €1.25 billion in the next two years.
Swedish real estate company SBB declined 12.6% to a five-year low of SEK 7.34 after the company halted its dividend and canceled its SEK 2.63 billion rights offering after S&P Global lowered its debt rating to junk level.
Purplebricks Group PLC plunged 61.1% to 2.34 pence after the UK-based online real estate company said it may not return to positive cash generation in early fiscal 2024 as previously estimated.
JD Sports Fashion PLC increased 2.2% to 165.55 pence after the UK-based specialty retailer proposed to acquire France-based Groupe Courir for €520 million.
Daimler Truck Holding AG declined 4.3% to €28.07 after the company reiterated its annual outlook and confirmed previously announced preliminary results.
Movers: Fresenius, Lucid Group, PayPal, SeaWorld Entertainment, Semrush, Warby Parker
Scott Peters
09 May, 2023
New York City
PayPal Holdings Inc decreased 7.2% to $70.50 after the payment services provider said net revenue in the first quarter increased 9% to $7.04 billion from $6.5 billion and net income increased 56% to $795 million from $509 million and diluted earnings per share increased to 70 cents from 43 cents a year ago.
Total payment volume soared 10% from a year ago to $354.5 billion from $322.9 billion and payment transactions rose 13% to 5.8 billion.
Total active accounts on a trailing 12 months basis increased 1% to 433 million and payment transactions per active accounts increased 13% to 53.1 million.
In the first quarter, the company repurchased approximately 19 million of its shares for $1.4 billion and repurchased approximately 48 million shares for $4.1 billion.
Lucid Group plunged 9.7% to $6.98 after the luxury electric vehicle marker said revenue in the first quarter increased to $149.4 million from $57.7 million and net loss widened to $779.5 million from $604.7 million and diluted loss per share increased to 43 cents from 36 cents a year ago.
The electric vehicle company produced 2,314 units and delivered 1,406 units. The company said liquidity at the end of the quarter was $4.1 billion.
Fresenius Medical SE increased 0.9% to $23.40 after the German dialysis company reported adjusted earnings that were ahead of expectations.
Revenue in the first quarter increased 3.4% to €4.7 billion and net income fell 45.1% to €86 million from €157 million and basic earnings per share declined to 29 cents from 54 cents a year ago.
Adjusted earnings per share, which excludes the U.S. Provider Relief Funding and Ukraine war related items among other adjustments, declined to 53 cents from 67 cents a year ago.
Fresenius forecasted 2023 annual revenue "to grow at a low to mid-single digit percentage rate" from €19.39 billion and operating income to remain "flat or decline by up to a high-single digit percentage rate" from €1.54 billion.
Semrush Holdings, Inc decreased 11.9% to $8.68 after the cloud based services provider reported first quarter results.
Revenue in the first quarter increased 24% to $70.9 million and average revenue run rate advanced 23% to $293 million and paying customers increased 15% to above 100,000.
Free active customers increased 36% to 885,000 and the number of customers paying more than $10,000 increased 45%.
Net loss in the quarter increased to $9.9 million from $2.9 million and diluted loss per share expanded to 7 cents from 2 cents a year ago.
The company forecasted second quarter revenue to increase 19% at mid-point of the range between $73.6 million and $75 million and non-GAAP earnings between $1.5 million and $3.0 million.
For the full-year 2023, the company estimated revenue between $306.0 million and $309.0 million and non-GAAP net income between breakeven and $3.0 million.
SeaWorld Entertainment Inc increased 5.3% to $59.43 after the company reported a record park attendance in the first quarter.
Revenue in the first quarter increased 8.4% to $293.3 million and net loss expanded to $16.5 million from $9.0 million and diluted loss per share increased to 26 cents from 12 cents a year ago.
The company reported record revenue for the eighth quarter in a row.
Total revenue per person increased 9.2% to $86.84, driven by admission per person increased 9.4% to $48.51 and 8.9% increase in in-park spending to $38.33.
After the end of the first quarter, the company repurchased 235,000 shares for $13.9 million, leaving approximately $42.4 million remaining in its stock repurchase program as of May 4.
Warby Parker Inc declined 2.2% to $11.86 after the company reiterated its annual revenue outlook.
Revenue in the first quarter increased 12.2% to $172 million and average revenue per customer increased 8.4% to $270 and active customers increased 2.5% to 2.29 million.
The company opened 6 new stores in the quarter and the total store count increased to 204.
Net loss in the quarter shrank $10.8 million from $34.1 million and diluted loss per share fell to 9 cents from 30 cents a year ago.
The company reiterated its full-year 2023 revenue outlook between $645 million and $660 million, an increase between 8% and 10% from the previous year.
Lacking Impetus Stocks Drift Downward Amid Persistent Regional Banks Worries
Barry Adams
09 May, 2023
New York City
Stocks remained in the downward trend ahead of two key inflation reports over the next two days.
In muted trading, benchmark indexes are expected to trade sideways ahead of the consumer price inflation report Wednesday.
Stocks have been on the defensive on a growing realization that the regional banking crisis is not likely to go away soon, despite the drumbeat of assurances offered by the Federal Reserve and Treasury officials.
The Federal Reserve is struggling to tackle high inflation while avoiding the economy slipping into a deeper slowdown and healthy labor market.
Despite the ten rate hikes over the last fourteen months, inflation is still significantly higher than the Fed's preferred target rate of 2%.
Moreover, higher rates have dented balance sheets of banks after Treasury securities declined to reflect higher yields, forcing banks to slow lending to customers and shore up weakening capital bases.
Treasury Secretary Janet Yellen confirmed in an interview with CNBC that there are no plans to halt targeted short selling in regional bank stocks.
However, the U.S. Treasury is open to working with the Congress in expanding insurance limit for bank deposits, added Yellen.
With no policy change in the immediate future and interest rates are likely to remain elevated, the decline in regional bank stocks is likely to continue.
KRE, SPDR Regional Banking ETF, declined 2% in Monday's trading and extended this year's losses to 35.6%.
In overseas trading European markets traded lower and the Hang Seng Index in Hong Kong declined 2% after tech stocks led the decliners.
China's export growth slowed in April and trade surplus soared from a year ago but imports declined for the seventh month in a row reflecting uneven post-Covid economy recovery.
China's Export Growth Slowed In April
China's international trade data showed a sustained recovery for its goods for the second month in a row but weak demand at home led to the decline in imports for the seventh month in a row.
China's exports rose 8.5% from a year ago in April to $295.42 billion, slower than the 14.5% rise in March according to the latest data released by the General Administration of Customs of China.
Imports declined 7.9% in April to $205.21 billion, down from a 1.4% decline in March.
Trade surplus in April soared to $90.21 billion from $49.47 billion a year ago.
On a monthly basis, exports decreased 6.4% and imports fell 9.7%.
U.S. Indexes & Yields
The S&P 500 index decreased 0.4% to 4,121.48 and the Nasdaq Composite fell 0.5% to 12,191.02.
The yield on 2-year Treasury notes hovered at 4.00%, 10-year Treasury notes edged up to 3.499% and 30-year Treasury bonds held at 3.82%.
Crude oil fell 75 cents to $72.42 a barrel and natural gas prices rose 3 cents to $2.25 a thermal unit.
U.S. Stock Movers
PayPal Holdings Inc decreased 7.2% to $70.50 after the payment services provider said net revenue in the first quarter increased 9% to $7.04 billion from $6.5 billion and net income increased 56% to $795 million from $509 million and diluted earnings per share increased to 70 cents from 43 cents a year ago.
Total payment volume soared 10% from a year ago to $354.5 billion from $322.9 billion and payment transactions rose 13% to 5.8 billion.
Total active accounts on a trailing 12 months basis increased 1% to 433 million and payment transactions per active accounts increased 13% to 53.1 million.
In the first quarter, the company repurchased approximately 19 million of its shares for $1.4 billion and repurchased approximately 48 million shares for $4.1 billion.
Lucid Group plunged 9.7% to $6.98 after the luxury electric vehicle marker said revenue in the first quarter increased to $149.4 million from $57.7 million and net loss widened to $779.5 million from $604.7 million and diluted loss per share increased to 43 cents from 36 cents a year ago.
The electric vehicle company produced 2,314 units and delivered 1,406 units. The company said liquidity at the end of the quarter was $4.1 billion.
Fresenius Medical SE increased 0.9% to $23.40 after the German dialysis company reported adjusted earnings that were ahead of expectations.
Revenue in the first quarter increased 3.4% to €4.7 billion and net income fell 45.1% to €86 million from €157 million and basic earnings per share declined to 29 cents from 54 cents a year ago.
Adjusted earnings per share, which excludes the U.S. Provider Relief Funding and Ukraine war related items among other adjustments, declined to 53 cents from 67 cents a year ago.
Fresenius forecasted 2023 annual revenue "to grow at a low to mid-single digit percentage rate" from €19.39 billion and operating income to remain "flat or decline by up to a high-single digit percentage rate" from €1.54 billion.
Europe Movers: Banco BPM, Daimler Truck, Fresenius Medical, JD Sports, Purplebricks, SBB
Bridgette Randall
09 May, 2023
Frankfurt
Banco BPM SpA increased 4.99% to €3.95 after the Italian bank reported stronger-than-expected earnings and the bank lifted its annual outlook for 2023 and 2024.
Net interest income in the first quarter increased 38.9% to 779.28 million from 561.18 million and net income advanced 49.2% to 265.32 million from 177.80 million a year ago.
The company forecasted 2023 annual earnings of €1.1 billion or 75 cents from the previous estimate of 60 cents and 2024 earnings of €1.4 billion and earnings per share of 90 cents from the previous estimate of 75 cents.
The company also announced its plan to distribute dividends of €1.25 billion in the next two years.
Daimler Truck Holding AG declined 4.3% to €28.07 after the company reiterated its annual outlook and confirmed previously announced preliminary results.
Fresenius Medical SE increased 6.9% to €27.21 after the German dialysis company reported adjusted earnings that were ahead of expectations.
Revenue in the first quarter increased 3.4% to €4.7 billion and net income fell 45.1% to €86 million from €157 million and basic earnings per share declined to 29 cents from 54 cents a year ago.
Adjusted earnings per share, which excludes the U.S. Provider Relief Funding and Ukraine war related items among other adjustments, declined to 53 cents from 67 cents a year ago.
Fresenius forecasted 2023 annual revenue "to grow at a low to mid-single digit percentage rate" from €19.39 billion and operating income to remain "flat or decline by up to a high-single digit percentage rate" from €1.54 billion.
JD Sports Fashion PLC increased 2.2% to 165.55 pence after the UK-based specialty retailer proposed to acquire France-based Groupe Courir for €520 million.
Purplebricks Group PLC plunged 61.1% to 2.34 pence after the UK-based online real estate company said it may not return to positive cash generation in early fiscal 2024 as previously estimated.
Swedish real estate company SBB declined 12.6% to a five-year low of SEK 7.34 after the company halted its dividend and canceled its SEK 2.63 billion rights offering after S&P Global lowered its debt rating to junk level.
European Markets Hover Near Record Highs, French Trade Deficit Improved
Bridgette Randall
09 May, 2023
Frankfurt
European stocks traded near flat-line as investors looked ahead to inflation reports from the U.S.
Benchmark indexes traded lower and investors mulled over rate path economic slowdown amid persistent inflation worries.
U.S. consumer price inflation report is scheduled to be released on Wednesday followed by the producer price inflation report on Thursday.
Investors are hoping that lower crude oil and natural gas prices will lower headline inflation in April and core inflation will also remain flat near 4.5%.
On Thursday the Bank of England is expected to announce its interest rate decision and investors are anticipating a rate increase of at least 25 basis points as the island nation struggles with high inflation driven by food and energy prices.
Despite challenging economic data, European market indexes are trading near record high levels and corporations are reporting record sales and earnings.
French Trade Deficit Improved On Lower Energy Costs
The French trade deficit declined to €8 billion in March, following a downwardly revised deficit of €9.3 billion in February, the Ministry of Economy and Finance reported Tuesday.
Imports fell 3.1% from the previous month to a nearly one year low of €50.5 billion and exports decreased 1.2% to €58.5 billion.
Trade deficit improved because of the sharp fall in energy import prices for the second quarter in a row.
Trade deficit in the first quarter improved to €29.8 billion from €33.5 billion a year ago after exports increased to €151.2 billion from €141.0 billion and imports jumped to €180.9 billion from €174.5 billion a year ago.
Europe Indexes & Yields
The DAX index decreased 0.3% or 44.21 points to 15,908.29, the CAC-40 index fell 0.9% or 61.80 points to 7,379.11 and the FTSE 100 index fell 0.5% or 35.26 to 7,743.21.
For the year so far to the close of Monday, the DAX index increased 13%, the CAC-40 index 11.4% and the FTST 100 index about 2.4%.
The yield on 10-year German Bunds inched up to 2.30%, French bonds traded slightly higher to 2.90%, the UK gilts inched higher to 3.80% and Italian bonds advanced to 4.23%.
The euro edged higher to $1.095, the British pound to $1.264 and the Swiss franc to 89.14 cents.
Brent crude fell 56 cents to $76.44 a barrel and the Dutch TTF natural gas decreased €0.52 to €36.36 per MWh.
Europe Stock Movers
Fresenius Medical SE increased 6.9% to €27.21 after the German dialysis company reported adjusted earnings that were ahead of expectations.
Revenue in the first quarter increased 3.4% to €4.7 billion and net income fell 45.1% to €86 million from €157 million and basic earnings per share declined to 29 cents from 54 cents a year ago.
Adjusted earnings per share, which excludes the U.S. Provider Relief Funding and Ukraine war related items among other adjustments, declined to 53 cents from 67 cents a year ago.
Fresenius forecasted 2023 annual revenue "to grow at a low to mid-single digit percentage rate" from €19.39 billion and operating income to remain "flat or decline by up to a high-single digit percentage rate" from €1.54 billion.
Banco BPM SpA increased 4.99% to €3.95 after the Italian bank reported stronger-than-expected earnings and the bank lifted its annual outlook for 2023 and 2024.
Net interest income in the first quarter increased 38.9% to 779.28 million from 561.18 million and net income advanced 49.2% to 265.32 million from 177.80 million a year ago.
The company forecasted 2023 annual earnings of €1.1 billion or 75 cents from the previous estimate of 60 cents and 2024 earnings of €1.4 billion and earnings per share of 90 cents from the previous estimate of 75 cents.
The company also announced its plan to distribute dividends of €1.25 billion in the next two years.
Swedish real estate company SBB declined 12.6% to a five-year low of SEK 7.34 after the company halted its dividend and canceled its SEK 2.63 billion rights offering after S&P Global lowered its debt rating to junk level.
Purplebricks Group PLC plunged 61.1% to 2.34 pence after the UK-based online real estate company said it may not return to positive cash generation in early fiscal 2024 as previously estimated.
JD Sports Fashion PLC increased 2.2% to 165.55 pence after the UK-based specialty retailer proposed to acquire France-based Groupe Courir for €520 million.
Daimler Truck Holding AG declined 4.3% to €28.07 after the company reiterated its annual outlook and confirmed previously announced preliminary results.
China's Export Growth Slowed In April, Weak Domestic Demand Dragged Imports for 7th Month
Brian Turner
09 May, 2023
New York City
China's international trade data showed a sustained recovery for its goods for the second month in a row but weak demand at home led to the decline in imports for the seventh month in a row.
China's exports rose 8.5% from a year ago in April to $295.42 billion, slower than the 14.5% rise in March according to the latest data released by the General Administration of Customs of China.
Imports declined 7.9% in April to $205.21 billion, down from a 1.4% decline in March.
Trade surplus in April soared to $90.21 billion from $49.47 billion a year ago.
On a monthly basis, exports decreased 6.4% and imports fell 9.7%.
China's exports markets showed a varied level of performance as trade with the U.S. shrank but exports advanced to the European Union and the ASEAN or Association of Southeast Asian Nations.
Exports to the U.S. declined 6.5% from a year ago and imports decreased 3.1%.
Russia's reliance on China deepened as China's exports rose 153% but imports increased at a slower pace of 8.06%.
However, exports to the European Union advanced 3.87% and imports from the region eased 0.12%.
Trade with the ASEAN region showed a mixed picture, while imports decreased 6.25%, exports to the region increased 4.49%.