Europe Movers: ABB, Frasers Group, Nokia, Publicis Groupe

Inga Muller
18 Jul, 2024
Frankfurt

The European Central Bank held its three key lending rates steady after trimming rates by 25 basis points in June for the first time since 2016. 

The European Union passenger car registration increased in June, but battery vehicle sales eased. 

The DAX index increased by 0.2% to 18,485.06; the CAC-40 index rose by 0.5% to 7,612.10; and the FTSE 100 index advanced by 0.6% to 8,239.17. 

The yield on 10-year German bonds edged higher to 2.44%, French bonds inched higher to 3.10%, the UK gilts inched higher to 4.08%, and Italian bonds decreased to 3.73%.

Frasers Group PLC increased 8.9% to 889.50 pence after the company's annual guidance for the current year surpassed market expectations. 

Publicis Groupe SA gained 4.5% to €101.60 after the company reported better-than-expected first-half results and raised its annual outlook for organic growth. 

Automakers advanced after new car registration in the European Union increased by 4.3% to 1.09 million units, reversing the 3% decline in May. 

BMW increased 1.8% to €91.32, Mercedes Benz advanced 2% to €64.61, Volkswagen jumped 1.2% to €107.75, and Renault gained 0.7% to €50.08. 

Nokia declined 4.7% to €3.41, and the Finnish telecom equipment maker reported a 32% decline in its second quarter operating income due to weak demand for its 5G wireless communication equipment. 

ABB Ltd. declined 6.2% to CHF 47.98 after the Swiss engineering company reported higher earnings, but orders fell in the second quarter. 

Net income increased by 21% to $1.1 billion from $906 million, and basic earnings per share rose to 59 cents from 49 cents a year ago. 

Revenue increased 1% to $8.24 billion from $8.16 billion, and orders dropped 3% to $8.44 billion from $8.67 billion in the previous year. 

For the fiscal year, ABB retained its comparable revenue growth estimate of 5% and operational EBIT margin of 18%.