Europe Movers: French Bank, Landore, Legal & General, Rentokil, Skanska

Inga Muller
12 Jun, 2024
Frankfurt

European stocks and bonds rebounded after a two-day selloff following Sunday's European Parliament election results. 

French bond yields remained under pressure after the French president dissolved parliament and announced a surprise election that could lead to political gridlock until the next presidential election in 2027. 

The DAX index increased by 0.6% to 18,471.95; the CAC-40 index rose by 0.4% to 7,818.58; and the FTSE 100 index advanced by 0.6% to 8,196.35. 

The yield on 10-year German bonds edged lower to 2.60%. French bonds inched lower to 3.20%; the UK gilts edged lower to 4.25%; and Italian bonds decreased to 4.03%.

French banks rebounded after two days of selloffs, and bond yields recovered. 

Societe Generale gained 0.9% to €23.08, Credit Agricole rose 2.4% to €13.90, and BNP Paribas advanced 1.7% to €61.79. 

Legal & General declined 5% to 230.89 pence after the newly appointed chief executive launched a restructuring plan to focus on three core units. 

Rentokil Initial plc soared 12.3% to 466.40 pence after activist investor Trian Fund Management acquired a substantial stake in the company. 

Skanska AB jumped 0.7% to SEK 186.90 after the Swedish construction company sold its multi-family rental business in Denmark to NREP for about 737 million Danish kroner, or 1.1 billion Swedish kronor. 

Landore Resource surged 33% to 3.80 pence after the gold mining company secured £3.7 million to expand its gold project in Northwestern Ontario, Canada. 

The BAM Gold Project, an early-stage development project, spanning 30,507 hectares is estimated to have at least one million ounces of gold deposits. 

The company sold 153.47 million shares at a price of 2.40 pence per share in a two-tranche offering to investors, representing 49.56% of the enlarged share capital.