Europe Movers: BAE, Banco de Sabadell, BBVA, ITV, John Wood, Nexi, Telefonica

Inga Muller
09 May, 2024
Frankfurt

European markets paused a 4-day rally, and benchmark indexes in Paris, London, and Frankfurt hovered near record highs. 

The Bank of England is expected to hold interest rates amid elevated food and service sector inflation. Resource stocks advanced after China's imports rose in April.

The DAX index increased by 0.3% to 18,547.88; the CAC-40 index fell by 0.1% to 8,124.01; and the FTSE 100 index inched higher by 0.04% to a new intraday record of 8,357.51. 

The yield on 10-year German bonds edged down to 2.49%; French bonds inched lower to 2.99%; the UK gilts edged lower to 4.17%; and Italian bonds inched higher to 3.84%.

Banco de Sabadell jumped 3.5% to €1.86 after BBVA proposed a €12.2 billion hostile takeover of the company.

BBVA declined 5.8% to €9.68 after Sabadell's board rejected the company's all-cash merger offer earlier this week. 

Telefonica increased 0.1% to €4.19 after the Spanish telecom network operator reported better-than-expected quarterly results. 

Nexi increased 5.8% to €6.04 after the Italian payment processor reported better-than-expected first quarter results and launched its stock buyback program. 

Revenue in the first quarter increased 6% to €781.6 million from €737.6 million, and operating earnings rose 8.6% to €361.7 million from €333.1 million, a year ago, respectively.  

The company estimated 2024 revenue to increase in mid-single digit and operating earnings to advance in mid-to-high single-digit. 

The payment  processing company also estimated free cash flow of €700 million in the fiscal year 2024. 

China-related luxury goods makers declined despite the second-largest economy reporting rising imports in April. 

LVMH fell 0.9% to €780.60, Hermes declined 0.8% to €2,287.0, and Kering SA dropped 0.9% to €328.20. 

ITV gained 1.6% to 75.55 pence despite the UK-based broadcasting company reporting a decline in first quarter revenue. 

BAE Systems rose 0.8% to 1,392.50 pence after the defense contractor reiterated its fiscal year 2024 outlook and delivered strong performance in the year so far. 

Full-year 2024 sales are expected to rise between 10% and 12% from £25.28 billion, underlying earnings per share to advance between 6% and 8% to 63.2 pence, and free cash flow is expected to exceed £1.3 billion.    

The company said it plans to pay 2023 final dividend of 18.5 pence per share, subject to shareholder approval, on June 3.

The company said it has completed over 90% of the three-year share buyback program of up to £1.5 billion, which commenced in July 2022, and the company plans to launch its next £1.5 billion stock repurchase program at the end of the current plan. 

John Wood Group was nearly unchanged at 192.90 pence after the oil services company confirmed its outlook for fiscal years 2024 and 2025.