Europe Movers: Airbus, Anglo American, French Banks, Petrofac, Valneva

Inga Muller
01 Jul, 2024
Frankfurt

The French election results indicated far-right parties won a smaller than feared number of seats in the first round of the election, raising the prospect of legislative gridlock and holding the increase in government spending. 

The DAX index increased by 0.3% to 18,289.86; the CAC-40 index gained by 1.5% to 7,588.25; and the FTSE 100 index rose by 0.3% to 8,189.08. 

The yield on 10-year German bonds edged higher to 2.56%; French bonds inched higher to 3.26%; the UK gilts edged higher to 4.22%; and Italian bonds decreased to 4.06%.

French banks rebounded after the announcement of national election results, indicating that the far-right party fell short of an absolute majority in the first round of the national election. 

BNP Paribas jumped 3.5% to €61.85, Credit Agricole gained 4.1% to €13.27, and Societe Generale advanced 5% to €23.03. 

Airbus SE increased 2.2% to €131.08 after the European airplane maker entered into a bid agreement with Spirit AeroSystems to acquire a business unit supplying products and systems to the company. 

Separately, Boeing agreed to acquire the majority of the assets owned by Spirit AeroSystems in an all-stock deal that valued the equity of the company at $4.7 billion, or $37.25 per share. 

The total transaction is valued at $8.3 billion, including the total debt of the company. 

Valneva soared 5.3% to €3.35 after the European Commission approved marketing of the company's chikungunya vaccine, IXCHIQ, for adults 18 years and older. 

Petrofac Ltd. jumped 3.5% to 13.47 pence after the company extended its interest payment moratorium on its secured senior notes to July 25 from June 30. 

Anglo American declined 2.1% to 2,450.0 pence after the company suspended its activities in a coal mine in Queensland, Australia, following an underground coal gas ignition incident.