Europe Movers: Aurubis, Deutsche Post, Energy Stocks, Petrofac, Indivior, Telefonica

Inga Muller
20 Dec, 2023
Frankfurt

European markets traded mixed, and investors debated the rate path and economic outlook after the UK's consumer price inflation dropped to a 26-month low and Germany's producer price index declined for the fifth month in a row.

The DAX index decreased 0.08% to 16,736.24, the CAC-40 index inched down 0.04% to 7,572.68, and the FTSE 100 index increased 0.8% to 7,696.15.

The yield on 10-year German bonds decreased to 1.98%; French bonds inched lower to 2.50%; the UK gilts inched lower to 3.56%; and Italian bonds inched lower to 3.62%.

Energy stocks traded higher after crude oil prices rebounded more than 1.5% on supply disruptions and rising tensions in the Red Sea.

BP plc gained 0.8% to 467.45 pence, Shell plc advanced 1% to 2,568.0, TotalEnergies SE added 0.2% to €62.11, and Repsol increased 0.1% to €13.58.

Petrofac Ltd. soared 34.2% to 30.10 pence after the energy industry service provider won a $1.4 billion multi-year contract from TenneT to expand the Dutch-German transmission system operator's offshore wind capacity in the North Sea.

Telefonica rose 3.7% to €3.70 after the Spanish government said it plans to buy as much as a 10% stake in the telecom operator.

The government announced its plan after the Saudi Telecom Company revealed a 9.9% stake in the company in September.

Spain considers Telefonica a defense service provider, giving a veto power to the Defense Ministry over who owns and controls shares in the company over 5%, unless the stockholders give up rights to have a board seat.

Indivior PLC rose 2.8% to 1,179.0 pence after the company settled its patent dispute with Actavis Laboratories, a subsidiary of Israel-based Teva Pharmaceuticals.

Teva Pharmaceuticals advanced 0.9% to €9.48 in Paris trading.

Aurubis AG decreased 0.6% to €77.04 after the German copper company confirmed a 38% plunge in its earnings in the fiscal 2023 period ending in September.

Revenue in the fiscal year declined 8.8% to €17.0 billion from €18.5 billion, consolidated net income dropped 38% to €268 million from €433 million, and diluted earnings per share fell to €6.13 from €9.91 a year ago.

Deutsche Post AG decreased 1.4% to €45.10 after the U.S.-based FedEx lowered its full-year revenue outlook, citing macroeconomic challenges.