European Indexes Rebound After Private Sector Activity Growth Gains Momentum

Bridgette Randall
23 May, 2024
Frankfurt

Market indexes in Europe advanced, bond yields in the region gained, and the euro held firm against major currencies. 

Benchmark indexes in London, Paris, and Frankfurt rose in early trading following a surge in tech stocks after the leading artificial intelligence chip maker Nvidia reported strong quarterly results. 

The rise in private sector activities to the highest level in a year also lifted market sentiment in European trading. 

The HCOB Eurozone Composite PMI increased to 52.3 in May from 51.7 in April after new orders, business activity, and employment levels picked up pace. Business confidence in the region advanced to a 27-month high amid steady improvements in new orders and demand. 

 

Europe Indexes and Yields

The DAX index increased by 0.3% to 18,732.76; the CAC-40 index rose by 0.2% to 8,107.94; and the FTSE 100 index inched higher by 0.05% to 8,375.05. 

The yield on 10-year German bonds edged up to 2.54%; French bonds inched higher to 3.02%; the UK gilts edged higher to 4.21%; and Italian bonds inched lower to 3.82%.

The euro edged higher to $1.084; the British pound inched higher to $1.272; and the U.S. dollar gained to 91.36 Swiss cents.

Brent crude increased $0.66 to $82.56 a barrel, and the Dutch TTF natural gas rose by €0.91 to €35.58 per MWh.

 

Europe Stock Movers

Hargreaves Lansdown PLC soared 10.9% to 1,086.0 pence after the investment platform rejected a surprise takeover approach from a consortium of private equity buyers. 

Aviva plc decreased 0.8% to 492.30 pence, despite the UK-based insurance company reporting better-than-expected results in the first quarter. 

Wizz Air Holdings soared 6.9% to 2,099.77 pence after the low-cost carrier returned to profitability in fiscal year 2024. 

E.ON declined 1.7% to €12.40 after the electric utility company reported mixed quarterly results. 

Revenue in the first quarter decreased 20% to €27.2 billion, net income swung to a profit of €584 million from a loss of €143 million, and earnings per share were 22 cents from a loss of 55 cents a year ago. 

National Grid plunged 9.9% to 1,016.0 pence after the electricity and gas utility announced its plans to raise £7 billion, or $8.9 billion, through a secondary offering of 1.09 billion shares. 

United Utilities declined 3.7% to 1,034.50 pence, and Drax Group plunged 8.2% to 510.50 pence after utilities companies faced selling pressure. 

Gerresheimer AG soared 11.8% to €104.20 after Germany packaging products maker agreed to acquire Blitz LuxCo sarl, the holding company of the Bormioli Pharma Group, for €800 million, or $865.92 million. 

CTS Eventim AG jumped 10% to €88.80 after the event ticketing platform operator reported better-than-expected operating income in the first quarter. 

Merck KGaA gained 0.7% to €169.65 after the German pharmaceutical company agreed to acquire life science company Mirus Bio for $600 million. 

Gamma Biosciences, the parent company of Mirus, is based in Madison, Wisconsin, and specializes in the development of transfection reagents, which play a critical role in viral vector-based gene therapy.