Europe Movers: Air France-KLM, BAT, BT Group, Centamin, Kering, Nestle, STMicroelectronics, Unilever

Inga Muller
25 Jul, 2024
Frankfurt

Weak corporate earnings and ongoing economic stagnation dampened market sentiment on bourses across Europe. 

The DAX index decreased by 1.2% to 18,162.03; the CAC-40 index declined by 2% to 7,365.63; and the FTSE 100 index fell by 0.6% to 8,100.89.

The yield on 10-year German bonds edged lower to 2.39%, French bonds inched lower to 3.10%, the UK gilts inched lower to 4.11%, and Italian bonds decreased to 3.77%.

Nestle SA decreased 4.9% to CHF 88.96 after the Swiss food products and beverage company lowered its full-year outlook following the 3% decline in sales in the first half. 

STMicroelectronics SA declined 14.7% to €31.62 after the advanced chipmaker reported lowering its outlook for the second time this year. 

Centamin declined 6.1% to 121.50 pence after the gold mining company reported weaker-than-expected net income in the first half. 

Centrica PLC dropped 7.2% to 132.0 pence after the company said Scott Wheway has resigned from the Chairman of the Board office and would not seek re-election as a director. 

British American Tobacco rose 4.4% to 2,690.0 pence after the company's first-half results met investors' expectations. 

BT Group declined 1.5% to 137.45 pence after the British telecom company said revenue in the fiscal first quarter declined. 

Unilever plc increased 6.4% to 4,678.0 pence after the food products maker reported better-than-expected first-half results. 

Kering SA dropped 6.4% to €279.25 after the Gucci parent issued another profit warning citing weakness in China sales.

Kering stock dropped to a seven-year low, near the level last seen in August 2017, after the luxury goods company said first-half operating income plunged 42% to €1.6 billion.

The company also issued a dire warning for the second half and added that operating earnings are likely to fall 30% from a year ago. 

Gucci sales are struggling in China because of high youth unemployment and a lingering property market crisis. The luxury label accounts for about half of Kering sales and two-thirds of its profits. 

Air France-KLM increased 3.3% to €8.17 despite the Franco-Dutch airline reporting second quarter earnings below market expectations. 

The airline group's operational revenue increased 4.3% to €7.9 billion from €7.6 billion, and net income plunged sharply to €165 million from €612 million a year ago. 

The airline said it expects revenue to take a hit between €150 million and €170 million in the third quarter as passengers avoid its Paris hub because of high prices and possible air travel disruptions during Olympic games.