Movers: Carlsberg, Entain, Luxury Stocks, Resource Stocks, Richemont, UK Homebuilders

Inga Muller
17 Jul, 2023
Frankfurt

European markets traded down on Monday on global growth worries and looming recession in the Euro Area. 

China reported a mixed bag of economic data for the second quarter and GDP growth slowed, private sector investment faltered and retail sales growth was weak in June. 

The DAX index decreased 0.5% to 16,020.29 16,103.98, the CAC-40 index advanced 1.2% to 7,283.26 and the FTSE 100 index decreased 0.3% to 7,412.09. 

The yield on 10-year German Bunds inched higher to 2.42%, French bonds traded lower to 2.98%, the UK gilts edged up to 4.38% and Italian bonds increased to 4.13%.

Mining and resource companies traded lower in London after China reported weaker-than-expected economic growth. 

Anglo American, Glencore, Antofagasta declined between 1.5% and 3% after crude oil prices declined 1% and copper fell 3%. 

Luxury stocks in Paris also declined following the weak retail sales growth in China.

Kering SA declined 1.9% to €490.70, Hermes International SCA dropped 3.9% to €1,916.80 and LVMH fell 4.2% to €854.30.  

Carlsberg SA declined 1.2% to €136.60 after the Russian government took control of its stake in a local brewery. 

UK home builders resumed the decline after the property listing platform Rightmove said that average newly listed property price declined by £905 to £371,907. 

Taylor Wimpey decreased 0.6% to 104.20 pence, Barratt Developments dropped 0.7% to 410.60 pence and Persimmon Plc fell 0.7% to 1,052.80 pence.   

Richemont SA plunged 9% to CHF 140.0 after the Swiss luxury company reported a decline in U.S. demand in its latest quarter. 

Sales in the first quarter ending in June rose 14% to €5.3 billion, or rose 19% in constant exchange rate. 

Sales in Europe increased 10% to €1.1 billion, in Asia Pacific soared 32% t0 €2.2 billion, Japan advanced 6% to €424 million, but fell 4% in the Americas to €1.1 billion. 

Entain Plc declined 1,262.0 pence after the UK-based company agreed to acquire the U.S.-based Angstrom Sports for £122 million or 160 million.