Europe Movers: Banks, Energy Stocks, Mining Stocks, Skanska, Vestas

Inga Muller
28 Dec, 2023
Frankfurt

European markets rested near their recent highs, and investors debated the rate path, the economic outlook in the currency union, and the prospects of global export growth amid a weak economic rebound in China.

The DAX index decreased 0.2% to 16,714.39, the CAC-40 index declined 0.2% to 7,562.36, and the FTSE 100 index inched lower by 0.07% to 7,718.97.

The yield on 10-year German bonds decreased to 1.92%; French bonds inched lower to 2.44%; the UK gilts inched lower to 3.48%; and Italian bonds inched higher to 3.52%.

Banks, financial services, and automakers struggled in the final week of trading.

Renault, Mercedes-Benz, Volkswagen, and Stellantis declined between 0.1% and 0.7%.

UniCredit, Deutsche Bank, Banco Santander, Societe Generale, and Barclays Bank declined between 0.2% and 0.6%.

Energy companies declined after Brent crude oil prices eased below $80 a barrel and leading shipping companies returned to the Red Sea shipping lanes despite the elevated tensions in the Middle East.

BP Plc declined 0.3% to 465.83 pence, Shell Plc decreased 0.3% to 2,548.0 pence, TotalEnergies dropped 1.3% to €61.64, and Repsol SA eased 1.4% to €13.61.

Mining companies lacked direction in thin trading, and base metal prices showed little movement on the persistent demand growth worries in China.

Glencore, Antofagasta, and Anglo American traded sideways in a tight trading range.

Vestas Wind System rose 1.8% to DKK 213.85 and extended gains for the sixth session in a row after the company won an order to supply 1.1 GW of wind turbines in the United States.

Skanska AB jumped 0.4% to SEK 183.40 after the company won a $147 million contract from the U.S. Navy for the National Oceanic and Atmospheric Administration.