European Markets Lack Direction, BHP Bids for Rival Anglo American

Bridgette Randall
25 Apr, 2024
Frankfurt

European market indexes decreased in cautious trading as investors reviewed the latest batch of earnings in the region. 

The market mood was cautious amid interest rate path uncertainties and a widening yield gap between the U.S. and Europe. 

Benchmark indexes in Frankfurt and Paris edged lower, and the reference index in London advanced after BHP proposed to acquire rival Anglo American and create the largest copper miner in the world, with about 10% of the world's production. 

France's manufacturing confidence index weakened in April, reflecting the pessimistic outlook for new orders, the latest survey from the statistical office INSEE showed. 

The confidence index eased to 100 from the revised 103 in March and hovered near the 5-year average as expectations for general production remained weak but the selling price trend turned positive. 

At the same time, forward-looking German consumer morale improved in May, according to the latest survey released by the market research group GfK. 

The consumer climate index improved to -24.2 for May from -27.3 for April, reaching the highest level in two years. 

Income expectations surged to the highest level since January 2022, while the propensity to save rose to a high level of 14.9 from 12.4 in the previous year due to the persistent economic uncertainty in Europe's largest economy. 

Consumer sentiment has been on the recovery after reaching a record low in October, but consumers still avoided discretionary items due to economic uncertainties, elevated inflation, and interest rates. 

 

Europe Indexes and Yields

The DAX index decreased by 0.6% to 17,980.58; the CAC-40 index fell by 0.5% to 8,048.04; and the FTSE 100 index inched higher by 0.7% to a new intraday record high of 8,094.60. 

The yield on 10-year German bonds edged up to 2.57%; French bonds inched higher to 3.07%; the UK gilts edged higher to 4.32%; and Italian bonds inched higher to 3.92%.

The euro edged higher to $1.072; the British pound inched higher to $1.252; and the U.S. dollar edged higher to 91.23 Swiss cents.

Brent crude increased $0.03 to $87.93 a barrel, and the Dutch TTF natural gas rose by €0.27 to €29.34 per MWh.

 

Europe Stock Movers

Anglo American plc soared 12.9% to 2,491.50 pence after the company received a takeover proposal from the rival BHP Group for £31 billion. 

BHP Group declined 2.9% to 2,295.0 pence. 

Nestle SA decreased 3.4% to CHF 90.78 after the Swiss food and beverage maker missed its organic sales growth estimates in the first quarter. 

Unilever plc rose 4.5% to 4,064.0 pence after the consumer products company reported better-than-expected quarterly sales and reiterated its full-year sales growth estimate between 3% and 5%. 

Hellofresh SE increased 3.8% to €7.0 after the meal-kit provider reiterated its fiscal year 2024 outlook. 

Delivery Hero soared 9% to €31.55 after the food delivery company reported strong first-quarter results and confirmed its fiscal year 2024 annual outlook. 

Pernod Ricard declined 3.3% to €140.25 after the French wine and spirit maker reported weaker-than-anticipated fiscal third quarter sales. 

Barclays PLC rose 5.4% to 200.85 pence after the UK-based financial services provider suffered a smaller-than-expected fall in profit in the first quarter.