Europe Movers: Allianz, Diageo, Red Row, Resource Stocks, Richemont, SCOR

Inga Muller
10 Nov, 2023
Frankfurt

European markets trimmed weekly gains after interest rate hikes worries resurfaced following comments from central bankers. 

The DAX index decreased 0.7% to 15,251.96, the CAC-40 index fell 0.9% to 7,049.25, and the FTSE 100 index fell 1.2% to 7,365.17.

The yield on 10-year German bonds increased to 2.73%, French bonds traded higher to 3.31%, the UK gilts edged up to 4.34%, and Italian bonds inched lower to 4.59%.'

Resource and mining stocks turned lower after prices of copper, iron ore, gold, and silver declined between 0.2% and 1.0%.

Antofagasta plc fell 2.8% to 1,288.0 pence, Anglo American plc decreased 3.5% to 1,288.0 pence, and Glencore PLC declined 1% to 425.65 pence.

Richemont SA declined 6.3% to CHF 105.40 after the Swiss luxury company reported weaker-than-expected third-quarter results.

Diageo plc plunged 16.2% to 2,720.0 pence after the alcoholic beverage maker said operating profit growth will slow in the first half of the fiscal year.

The company said sales in Latin America and the Caribbean, which account for 11% of total sales, are facing macroeconomic headwinds and customers are preferring cheaper alternatives.

Diego stock plunged after the company made a surprise announcement, reversing the earlier forecast of "gradual improvement" in sales growth.

The company still estimates sales growth improvement in North America, but sales in Europe and Asia Pacific continued to grow at a slower pace than in the previous half.

Redrow plc dropped 5.2% to 492.80 pence after the UK-based homebuilder said revenue and profit would be near the lower end of the previously announced range.

Allianz SE rose 2.2% to €227.40 after the German insurance company confirmed its 2023 operating profit target.

SCOR SE declined 5.5% to €26.46 after the tier 1 reinsurance company said quarterly gross premium declined to €4.87 billion from €5.14 billion a year ago.