European Markets Extend Weekly Gains; Eurostar and SNCF Face Arson Attacks

Bridgette Randall
26 Jul, 2024
London

European markets rebounded and extended their weekly gains as investors reviewed the latest batch of earnings. 

Market sentiment recovered after Hermes reported an increase in sales, EssilorLuxottica and Babcock International reported strong results, and Mercedes-Benz trimmed its annual outlook. 

Investors were unnerved after Eurostar canceled about 25% of its high-speed rail service following overnight arson and other "malicious attacks" ahead of the opening ceremony of the Olympic Games later this evening. 

SNCF confirmed in a statement that its railway network experienced several attacks early Friday morning, with several facilities and fiber optic lines damaged by fire. 

"This is a massive attack on a large scale to paralyze the TGV network," SNCF told AFP, adding that several train services may be canceled this weekend, affecting hundreds of thousands of travelers. 

 

Europe Indexes and Yields

The DAX index increased by 0.5% to 18,384.67; the CAC-40 index rose by 0.9% to 7,493.91; and the FTSE 100 index advanced by 0.8% to 8,253.60.

For the week, the DAX index gained 0.7%, the CAC 40 index fell 1.2%, and the FTSE 100 index advanced 1.4%. 

The yield on 10-year German bonds edged higher to 2.44%, French bonds inched higher to 3.13%, the UK gilts inched higher to 4.12%, and Italian bonds increased to 3.79%.

The euro edged lower to $1.08; the British pound inched lower to $1.286; and the U.S. dollar weakened to 88.27 Swiss cents.

Brent crude decreased $0.55 to $81.81 a barrel, and the Dutch TTF natural gas fell by €0.68 to €32.69 per MWh.

 

Europe Stock Movers

Hermes International SCA rose 2.9% to €2,066.0 after the French luxury goods maker said sales increased 13% in the second quarter, defying weak results from its peers. 

Babcock International soared 8.3% to 529.0 pence after the defense and aerospace company reported stronger-than-expected fiscal 2024 results. 

EssilorLuxottica jumped 8.3% to €208.90, and the Italian eyewear company reported better-than-expected first-half results. 

Capgemini SE declined 6.5% to €181.15 after the information technology service company revised its annual revenue outlook. 

The company estimated annual revenue to range between a decline of 0.5% and 1.5% from the previous estimate of an increase between zero and 3%. 

Mercedes-Benz Group was nearly unchanged at €62.95 after the German luxury vehicle maker lowered its annual profit outlook for its core passenger car unit.