Europe Movers: Ericsson, Luxury Stocks, Nokia, Resource Stocks, Spotify

Inga Muller
05 Dec, 2023
Frankfurt

European stocks advanced and extended the previous three weeks' gains after rate hike anxieties.

The DAX index increased 0.3% to 16,446.07, the CAC-40 index rose 0.4% to 7,359.99, and the FTSE 100 index decreased 0.3% to 7,490.18.

The yield on 10-year German bonds decreased to 2.30%; French bonds traded lower to 2.86%; the UK gilts declined to 4.14%; and Italian bonds inched lower to 4.04%.

Nokia declined 8.8% to €2.75 after AT&T said it plans to use telecom technology developed by the rival Ericsson.

The ORAN technology developed by Ericsson relies on cloud computing and non-proprietary and widely available equipment developed by other companies, cutting the cost significantly.

Ericsson increased 4.9% to kr56.97.

AT&T said its telecom network equipment spending could reach as much as $14 billion over the next five years.

Spotify Technology jumped 0.1% to €179.20 after soaring 15% in the previous session after the company said it plans to cut more staff.

Earlier in the year, the music streaming service provider announced its plan to cut 6% of its staff, followed by another 2% job cut in June and the latest 17%, or about 1,500 payrolls cut ahead of holidays. 

Energy complex stocks traded mixed on worries about the OPEC+ production quota, and crude oil prices advanced 0.3%.

BP increased 0.2% to 472.85 pence, Shell fell 0.5% to Є29.89, Repsol gained 0.2% to €13.94, and TotalEnergies added 0.3% to €61.60.

Mining stocks declined after Moody's cut China's credit outlook to negative, citing the ongoing worries about the country's property sector.

Glencore declined 1.8% to 449.40 pence, Antofagasta fell 0.7% to 1,446.0 pence, and Anglo American declined 2.5% to 2,170.0 pence.

Luxury stocks in Paris rebounded for the second day in a row in the hopes that the sustained demand growth in the U.S. is likely to offset the demand weakness in China.

LVMH added 0.5% to €702.20, Kering fell 0.2% to €399.30, Richemont decreased 0.2% to CHF 110.35, and Salvatore Ferragamo advanced 0.2% to €11.77.

Automobile stocks traded mixed, and luxury vehicle makers were under pressure from the growing demand uncertainties in China and the negative impact of higher interest rates in 2024.

Volkswagen Group declined 0.4% to €107.44, Mercedes-Benz Group rose 0.4% to €60.75, BMW rose 0.5% to €96.59, Ferrari increased 0.8% to €329.50, and Renault dropped 0.9% to €35.87.

Financial stocks traded mixed after bond yields drifted lower and the euro and the British pound held firm against the U.S. dollar.

Barclays fell 2.5% to 139.52 pence, HSBC fell 1.0% to 597.60 pence, Deutsche Bank inched higher 0.01% to €11.54, UniCredit declined 0.4% to €25.11, Societe Generale advanced 0.6% to €23.22, and UBS Group fell 1.7% to CHF 24.36.