Europe Movers: AXA, Capita Group, Chip Equipment Makers, Engie, IAG, Wizz Air

Inga Muller
02 Aug, 2024
Frankfurt

European markets extended weekly losses amid worries of domestic economic stagnation, a weakening economic backdrop in the U.S., and persistent deflation worries in China. 

The DAX index decreased by 1.6% to 17,792.84; the CAC-40 index fell by 0.8% to 7,315.21; and the FTSE 100 index declined by 0.2% to 8,267.81.

European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions. 

The yield on 10-year German bonds edged lower to 2.20%, French bonds inched lower to 2.97%, the UK gilts inched lower to 3.86%, and Italian bonds decreased to 3.63%.

Chip equipment makers were under pressure after Intel announced another disappointing quarter and its plans to lay off 15% of its staff. 

ASML declined 7.5% to €767.30, BE Semiconductor dropped 8.5% to €104.85, and Infineon Technologies dropped 4.2% to €29.81. 

AXA investments increased 2.4% to €32.59, and the French insurance company entered into talks with BNP Paribas to sell its investment unit, AXA Investment Managers, for €5.1 billion.

Engie SA increased 3% to €14.95, and the French energy utility and natural gas distributor lifted its annual 2024 outlook, citing its strong first-half results and lower-than-expected financial costs. 

Capita declined 9.2% to 17.37 pence after the UK-based outsourcing company reported a decline in first-half revenue. 

International Consolidated Airlines Group, or IAG, rose 6% to 169.40 pence, and the parent company of British Airways and Iberian Air reported strong first-half results. 

The airline group also announced its plans to reinstate its dividend for the first time since the start of the COVID-19 pandemic. 

Wizz Air Holdings decreased 4.6% to 1,411.80 pence after the discount airline reported a decline in seating capacity and passenger count in July.