Europe Movers: Adidas, AXA, BMW, Infineon, Lufthansa, Rolls-Royce, Societe Generale

Inga Muller
03 Aug, 2023
Frankfurt

European markets trimmed losses after the Bank of England lifted its key lending rates by 25 basis points and the Euro Area wholesale inflation turned negative for the second month in a row. 

The DAX index decreased 0.8% to 15,894.94, the CAC-40 index fell 0.8% to 7,251.72 and the FTSE 100 index dropped 0.7% to 7,508.68.  

The yield on 10-year German bonds increased to 2.53%, 8rench bonds traded higher to 3.10%, the UK gilts edged up to 4.42% and Italian bonds increased to 4.25%.

BMW declined 1.7% to €103.44 after the German luxury vehicle maker warned of simmering supply chain issues and higher inflation for the remainder of the year. 

Infineon Technologies AG dropped 7.8% to €35.09 after the company reported a decline of 10% in its adjusted quarter earnings. 

Lufthansa AG declined 5.4% to €8.35 despite the state controlled German airline reported record second quarter pre-tax earnings over €1 billion. 

Net profile in the second quarter rose to €881 million from €414 million in the first quarter, and from €259 million a year ago..

In the second quarter, Lufthansa flew 33.2 million passengers, 14% higher than 29.2 million a year ago but at 84% level in the corresponding quarter in 2019. 

Adidas AG increased 2.2% after the German sportswear maker revised higher its 2023 sales outlook. 

AXA SA declined 0.6% to €27.23 after the French insurance company reported first-half net income declined to €3.83 billion compared to €3.85 billion a year ago. 

Rolls-Royce Holdings Plc increased 3% to 189.55 pence after the aviation and defense company reported higher first-half net profit after margins improved in its civil aviation business. 

Societe Generale SA increased 2.9% to €24.69 after the company returned to profitability in the second quarter and resumed its stock repurchase plan of €440 million.  

Volatile mining companies traded lower following the weak sentiment in the commodities markets. 

Glencore, Anglo American and Antofagasta declined between 1% and 3%.