Europe Movers: Alstom, Automakers, Crest Nicholson, Halma, Wise

Inga Muller
13 Jun, 2024
Frankfurt

European markets turned lower amid rising political turmoil in France and growing trade tensions between the European Union and China. 

France's Parti republicain expelled its chief, Eric Ciotti, after the leader appealed to form an alliance with the far-right National Rally Party. 

The DAX index decreased by 1.2% to 18,417.31; the CAC-40 index fell by 1.4% to 7,757.89; and the FTSE 100 index declined by 0.5% to 8,174.73. 

The yield on 10-year German bonds edged lower to 2.54%. French bonds inched lower to 3.18%; the UK gilts edged lower to 4.18%; and Italian bonds decreased to 3.97%.

Automakers in Germany, France, and Italy declined after the EU imposed additional tariffs on Chinese electric vehicles. 

Mercedes-Benz Group fell 1.9% to €63.55, Volkswagen Group plunged 3.7% to €105.55, Stellantis eased 2.0% to €19.82, and Renault SA decreased 2.6% to €49.50.  

Alstom SA decreased 2.5% to €16.36 after the railroad company said it completed raising €1 billion, the final step of its €2 billion deleveraging plan.  

Halma plc jumped 12.2% to 2,637.0 pence after the health and safety device maker reported strong fiscal year results. 

Wise PLC tumbled 11.5% to 745.0 pence after the international money transfer service provider targeted lower underlying income growth in the current year. 

Revenue in the fiscal year 2024 ending in March soared to £1.05 billion from £846.1 million, and pre-tax profit surged 229% to £481 million. 

The company estimated organic earnings growth in the current fiscal year to range between 15% and 20%. 

Crest Nicholson dropped 11.4% to 213.40 pence after the UK-based home builder swung to a net loss in the first half and lowered its annual earnings outlook again. 

Revenue in the first half fell to £257.5 million from £282.7 million, reflecting fewer new home bookings at the beginning of 2024. 

Net income in the first half ending on April 30 swung to a pre-tax loss of £30.9 million compared to a pre-tax profit of £28.4 million a year ago. 

The home builder lowered its 2024 pre-tax profit outlook to between £22 million and £29 million, from the previous range between £45 million and £50 million released in November. 

The company completed 788 homes in the first half, compared to 894 homes a year ago. 

The board declared an interim dividend of 1.0 pence per share, compared to a dividend of 5.5 pence per share a year ago.