Europe Movers: AstraZeneca, Carl Zeiss Meditec, Hargreaves Lansdown, Hannover Re, Hedlam Group, Nokia, Renault

Inga Muller
12 Dec, 2023
Frankfurt

Stocks across Europe traded higher ahead of rate decisions from the European Central Bank, the Bank of England, the Swiss National Bank, and the Norges Bank.

The DAX index increased 0.2% to 16,830.29, the CAC-40 index rose 0.4% to 7,576.04, and the FTSE 100 index fell 0.6% to 7,578.66.

The yield on 10-year German bonds increased to 2.29%; French bonds traded higher to 2.78%; the UK gilts rose to 3.98%; and Italian bonds inched higher to 4.01%.

Rate-sensitive stocks were in focus ahead of the interest rate decision and policy announcement from the European Central Bank on Thursday.

BNP Paribas, Societe Generale, Deutsche Bank, Commerzbank, and UniCredit declined between 0.1% and 1.5%.

Allianz, Swiss Re, Generali, Aegon, and Mapfre declined between 0.2% and 1.5%.

Nokia Oyj rose 1.3% to €2.98 after the telecom equipment maker lowered its profitability goal after the company lost a multi-year contract with the U.S.-based AT&T.

AstraZeneca plc gained 1.7% to 10,266.0 pence after the company agreed to acquire the U.S.-based Icosavax Inc.

The Seattle, Washington-based company agreed to an offer price of $15 per share with an additional milestone-based payment of $5 per share.

The initial cash payment is about $838 million, a 43% premium to the closing price on December 11.

Icosavax’s lead program is a combination vaccine candidate targeting respiratory syncytial virus and human metapneumovirus.

Hedlam Group dropped 4.7% to 201.0 pence after the company announced a settlement with insurance companies linked to the Kidderminster building fire in 2021.

The company also reiterated its full-year outlook but cautioned that November sales volume and revenue remained "below the previous year and seasonal uplifts."

Hargreaves Lansdown dropped 7.2% to 712.0 pence after the UK regulator warned of possible regulatory action related to client charges.

Renault SA increased 0.03% to €38.01, and the French automaker announced its plan to sell a 5% stake in Nissan under the company's stock repurchase program.

Hannover Re added 0.9% to €222.40 after the German reinsurance company estimated higher earnings in the full year.

Carl Zeiss Meditec AG soared 8.6% to €95.46 after the German medical technology company reported better-than-expected annual revenue.

Sales in the fiscal year rose 9.8% to €2.1 billion from €1.90 billion, but earnings before interest and taxes declined to €348 million from €397 million.

The EBIT margin declined to 16.7% from 20.9% in the previous year, and the adjusted EBIT margin dropped to 17.4% from 21.4% a year ago, nearing the low end of its estimated range between 17% and 20%.