Europe Movers: Adidas, ASML, LVMH, Rio Tinto, Volvo

Inga Muller
17 Apr, 2024
Frankfurt

Stock market indexes in Europe rebounded following better-than-expected corporate results, the euro held firm, and bond yields in the region stayed near their recent levels. 

The DAX index increased by 0.5% to 17,855.71; the CAC-40 index rose by 1.1% to 8,016.46; and the FTSE 100 index inched higher by 0.4% to 7,855.95.

The yield on 10-year German bonds edged up to 2.48%; French bonds inched higher to 2.99%; the UK gilts edged higher to 4.29%; and Italian bonds inched lower to 3.88%.

LVMH rose 4.4% to €815.50 after the luxury fashion group reported a slower than expected decline in sales in the first quarter. 

The fashion company also offered an optimistic view about sales in Asia. 

Total revenue in the first quarter declined 2% to €20.7 billion from €21.0 billion, and selective retailing increased 5% to €4.17 billion from €3.97 billion. 

Fashion and leather goods sales declined 2% to €10.5 billion, and wine and spirits sales declined 16% to €1.4 billion. Watches and jewelry sales fell 5% to €2.4 billion, and perfumes and cosmetics sales rose 3% to €2.2 billion. 

"Europe and the United States achieved growth on a constant currency and consolidation scope basis over the quarter; Japan recorded double-digit revenue growth; the rest of Asia reflected the strong growth in spending by Chinese customers in Europe and Japan," the company noted in an investor update. 

Adidas increased 8.2% to €219.0 after the German athletic shoemaker upgraded its 2024 profit outlook. 

Volvo AB rose 2.4% to SEK 289.30 after the Swedish truck maker reported a smaller-than-expected decline in its adjusted operating profit. 

Rio Tinto Plc rose 3% to 5,415.0 pence, despite the mining company reporting a 5% decline in iron ore shipments in its latest quarter. 

ASML Holding decreased 3.2% to €884.60 after the Dutch chipmaking equipment maker reported fewer-than-expected new orders in the first quarter. 

New orders in the quarter totaled €3.6 billion, compared to a consensus of €5.4 billion estimated by analysts surveyed by Reuters. 

Revenue in the first quarter declined to €5.29 billion, compared to €7.23 billion in the fourth quarter of 2023. 

Net income fell to €1.2 billion from €2.04 billion and diluted earnings per share dropped to €3.11 from €5.21 a year ago, respectively. 

The company said sales in the second half are likely to pick up a faster pace, and the chipmaking equipment maker reiterated its annual sales estimate to match last year's sales of €27.6 billion.