Europe Movers: Anglo American, Berkeley Group, Energy Stocks, Monk Investment, Vivendi, Worldline

Inga Muller
08 Dec, 2023
Frankfurt

European markets advanced on the final day of the week and extended weekly gains for the sixth week in a row.

The DAX index increased 0.4% to 16,695.43, the CAC-40 index rose 1.0% to 7,498.74, and the FTSE 100 index fell 0.6% to 7,556.17.

For the week, the DAX index advanced 1.6%, the CAC-40 index gained 2.2%, and the FTSE 100 index gained 0.2%.

The yield on 10-year German bonds increased to 2.23%; French bonds traded higher to 2.77%; the UK gilts rose to 4.02%; and Italian bonds inched higher to 4.0%.

Natural resource stocks were in focus after energy prices rebounded by about 1.5% following calls from Saudi Arabia and Russia to cut oil production.

BP Plc rose 1.4% to 466.80 pence, Shell PLC added 1% to €29.65, Repsol added 0.5% to €13.88, and TotalEnergies gained 1% to €61.31.

Anglo American dropped 7.2% to 2,065.50 pence after the company announced a plan to lower its production in a bid to cut costs.

The company said it has reduced its operating costs by $0.5 billion in 2023 and identified an additional $0.5 billion in cost savings in 2024.

Moreover, the company plans to reduce its capex by $0.2 billion to $5.8 billion.

The diversified mining company said it will reduce its production at its iron ore mine in Kumba, South Africa, focus on higher margin production of platinum group metals, and continue production at only one plant at the Los Bronces copper operation in Chile.

The mining company forecasted 2023 production to increase by 0.3%: Quellaveco copper production ramp-up and solid iron ore production, offset by ore grades in Chile and lower platinum group metals and diamonds production.

Monk Investment Trust PLC gained 0.8% to 1,014.39 pence after the company reported a narrower loss in the first half of the fiscal year.

Berkeley Group Holdings decreased 1.8% to 4,848.0 pence after the home builder cautioned about challenging market conditions.

Vivendi Group advanced 2.4% to €8.88 after the media group was set to be included in the CAC 40 index on December 18, replacing Worldline.

Worldline added 0.7% to €15.87.