European Markets Advance, BHP, Pandora, Ted Baker In Focus

Bridgette Randall
16 Aug, 2022
Frankfurt

European markets traded higher in choppy trading and investors focused on corporate earnings and ignored the latest news on the economy. 

The indicator economic sentiment in the eurozone and Germany declined in August, according to the latest data released by the ZEW on Tuesday. 

The U.K. payrolls expanded i2.9% or 847,000 in July from a year ago and rose 0.2% or 73,000 from June, the ONS said Tuesday. 

The median monthly pay increased 6.6% from a year ago and rose 13.4% from February 2020 or just before the onset of the Covid-19 pandemic.

The employment data are preliminary and are expected to be revised.  

The latest data employment data indicated that the wage gains are significantly lagging the inflation and real wages are declining in the U.K. 

The DAX index increased 0.7% to 13,910.12, the CAC-40 index rose 0.4% to 6,592.58, and the FTSE 100 index advanced 0.4% to 7,536.06. 

Philips NV rose 2% to 19.89 euros after the Dutch company announced the CEO succession. 

Pandora AS declined 6.2% to 501.20 Danish Krone after the costume jewelry company said second quarter operating profit declined on higher costs. 

Revenues in the quarter increased 3% to 5.65 billion Danish Krone and operating profit declined to 1.25 billion from 1.3 billion Danish Krone. 

U.S. sales declined 1.2% in the quarter and China sales were impacted by the ongoing Covid-19 lockdowns affecting organic sales by 4 percentage points from 2021 and 7 percentage points from 2019. 

Net income in the period declined to 934 million from 992 million Danish Krone. 

The company retained its revenue growth outlook for the year between 4% and 6% and operating margin in the range of 25% and 25.5%. 

Ted Baker increased 17% to 108.80 pence after the fashion retailer agreed to an acquisition offer of 211 million pounds from the parent of Reebok, Juicy Couture, and David Beckham Authentic Brands Group. 

Delivery Hero SE increased 5.4% to 52.68 euros after the German-food delivery company reiterated its full-year outlook released in July. 

Mondi Group declined 2.2% to 1,636 pence after the packaging company agreed to acquire the Duino paper plant from Burgo Group of Italy for 40 million euros. 

BHP Group soared 5.3% to 2,349.74 after the mining giant reported record quarterly results in 11 years and said it plans to return a record amount of cash to shareholders. 

Net income in the fiscal year 2022 ending in June increased 173% to $30 billion and earnings per share shot up to $6.10 from $2.23 a year ago. 

The Anglo-American mining giant announced a final dividend of $1.75 a share or $8.9 billion, bringing total cash dividends for the full-year to a record $3.25 per share or 77% payout ratio. 

The annual profit included an exceptional after-tax gain of $7.1 billion reflects a net gain on merger of BHP