Europe Movers: Kering SA, Resource Stocks, Luxury Stocks, Volvo

Inga Muller
19 Jul, 2023
Frankfurt

European markets traded higher after slowing inflation trends lifted market sentiment. 

Passenger car registration in the European Union increased 17.8% in June to one million units, the European Automobile Manufacturers Association reported Wednesday. 

Passenger vehicle sales rose for the 11th month in a row with sales rising in Germany by 24.8%, Spain by 13.3%, and France by 11.5%.  

Battery powered electric vehicles sales rose 66% to 158,300 units, accounting for 15% of total sales. 

Despite the improving trend, passenger vehicle sales are still down 21% from pre-Covid sales in 2019 in the comparable period.   

The DAX index increased 0.1% to 16,142.09, the CAC-40 index advanced 0.4% to 7,347.21 and the FTSE 100 index increased 1.5% to 7,567.28. 

The yield on 10-year German Bunds inched higher to 2.33%, French bonds traded lower to 2.88%, the UK gilts edged up to 4.19% and Italian bonds increased to 3.99%.

Resource and mining stocks extended gains this week after crude oil prices and copper prices rebounded. 

Glencore, Antofagasta, and Anglo American advanced between 1% and 2%. 

Kering SA jumped 5.5% to €521.20 after the company reshuffled management structure. 

Marco Bizzarri, President and CEO of Gucci since 2015 and a member of Kering’s executive committee since 2012, will leave the company effective September 23. 

Francesca Bellettini, President and CEO of Yves Saint Laurent since 2013, in addition to her current role, is appointed Kering Deputy CEO, in charge of Brand Development. 

Jean-François Palus, currently Kering Group Managing Director, is appointed President and CEO of Gucci for a transitional period and Jean-Marc Duplaix, Chief Financial Officer since 2012, is appointed Kering Deputy CEO, in charge of Operations and Finance.

Luxury stocks rebounded after three days of weakness in Paris trading. 

LVMH, Hermes and Richemont SA gained between 1% and 2.5% and Dassault Systems, Capgemini and Michelin jumped more than 1%. 

However, Publicis Groupe, Schneider Electric and ArcelorMittal dipped down 1%. 

In Frankfurt trading, Siemens Healthineers,  Zalando, Vonovia and Sartorius gained between 1% and 2%. 

Volvo AB declined 0.2% to 223.30 Swedish krona after the commercial vehicle maker reported higher sales and earnings in its latest quarter but orders declined. 

Net sales in the quarter increased 18% to 140.80 billion kronor from 118.9 billion kronor  and net income rose to 10.82 kronor from 10.52 kronor and earnings per share increased to 5.30 kronor from 5.14 kronor a year ago.  

New truck orders in the quarter declined 10% to 48,300 units but deliveries in the period rose 5% to 68,300 units.