Europe Movers: Energy Stocks, Evotec, JD Sports, Next, Nordex, Telefonica

Inga Muller
04 Jan, 2024
Frankfurt

European market indexes rebounded from three-week lows, and investors reviewed the latest updates on business activity indexes in Spain and Italy.

Consumer price inflation accelerated in France to 3.7% in December from 3.5% in November, and the regional data from Germany suggested that inflation is likely to accelerate in the nation.

The DAX index increased 0.3% to 16,594.26, the CAC-40 index rose 0.4% to 7,437.45, and the FTSE 100 index inched higher by 0.1% to 7,690.09.

The yield on 10-year German bonds decreased to 2.06%; French bonds inched higher to 2.61%; the UK gilts edged up to 3.69%; and Italian bonds advanced to 3.75%.

Energy stocks advanced after the crude oil price extended a 3-day gain amid rising tensions in the Middle East and growing violence in the Red Sea lanes, which prompted worries about supply disruptions.

U.S. President Joe Biden warned that the U.S. Navy fleet will attack Houthi installations unless rebels stop attacking merchant cargo ships traveling through Red Sea lanes.

The joint statement included support from the U.S., Japan, the UK, and Germany.

Telefonica SA rose 1% to €3.68 after the Spanish telecom operator signed an agreement with a trade union to lay off up to 3,421 staff.

The company will also take a charge of €1.3 billion linked to its layoff plan.

Nordex SE increased 2.2% to €10.04 after the company said it received an order to supply 106 MW of wind turbines from Spanish electricity producer Capital Energy.

The company did not disclose any financial details related to the order.

Evotec SE dropped 19% to €17.36 after the German biotech company said chief executive Werner Lanthaler stepped down from the office for personal reasons.

Next plc advanced 4.7% to €17.36 pence after the retailer lifted its profit outlook after sales in the pre-Christmas period were ahead of the company's expectations.

The company increased its full-year pre-tax profit estimate by £20 million to £905 million, up 4.0% from a year ago. 

The retailer lifted its after-tax earnings per share estimate to 569.9 pence from the previous estimate of 557.7 pence released in November. 

JD Sports Fashion PLC plunged 23.7% to 118.35 pence after the specialty retailer lowered its full-year profit estimate.

The retailer estimated profit before tax and adjusted items between £915 million and £935 million for the full-year ending on February 3. 

The company added organic sales in the 22-week period ending on December 30 increased 6% and comparable sales were 1.8%, both were below management's expectations.