Europe Movers: Casino Guicahrd, Crest Nicholson, French Banks, Tesco

Inga Muller
14 Jun, 2024
Frankfurt

European markets extended weekly losses to between 2% and 4% after France's political realignment, which could change the balance of power after the snap election in two weeks. 

The spread between the French and German bond yields soared to a multi-year high. 

The DAX index decreased by 1.2% to 18,043.91; the CAC-40 index fell by 2.3% to 7,531.21; and the FTSE 100 index declined by 0.5% to 8,124.45. 

For the week, the CAC - 40 declined 4.3%, the DAX index dropped 2.4%, and the FTSE 100 index decreased 1.0%. 

The yield on 10-year German bonds edged lower to 2.36%. French bonds inched lower to 3.17%; the UK gilts edged lower to 4.05%; and Italian bonds decreased to 3.96%.

French banks and insurance service providers declined for the third day in a row, amid the rising possibility of extreme parties on the right and left gaining a larger share of seats in parliament. 

Societe Generale declined 5.3% to €21.76, Credit Agricole dropped 4.5% to €12.83, and BNP Paribas fell €57.60. 

Casino Guicahrd dropped 3.3% to €3.30 after the retailer said it entered into exclusive negotiations with Auchan Retail France and Rocca regarding the sale of its Corsican subsidiary, Codim 2. 

Crest Nicholson Holdings soared 11.5% to 237.40 pence after the homebuilder rejected the second all-cash offer from its larger competitor, Bellway. 

Tesco plc increased 2.7% to 310.50 pence after the company reported a rise in its retail grocery sales operation. 

Revenue in retail operations increased by 3.4% on a comparable basis to £15.3 billion in the first three months of the fiscal year. 

The global retail sales increase was driven by a better-than-expected sales increase of 4.4% in Ireland to £731 million and a UK sales increase of 4.6% to £11.3 billion. 

Sales at the company's wholesale division, Booker, declined 1.3% to £2.23 billion, due to the weakness in tobacco sales and the tough comparison from the previous year. 

The retailer reiterated its annual adjusted operating profit outlook to £2.8 billion and free cash flow range between £1.4 billion and £1.8 billion.