Europe Movers: Bayer, Nibe, UBS

Inga Muller
16 Aug, 2024
Frankfurt

European markets extended gains for the second week in a row after global markets recovered from sharp losses the previous week.   

The DAX index increased by 0.6% to 18,285.28; the CAC-40 index rose by 0.2% to 7,440.21; and the FTSE 100 index eased by 0.5% to 8,308.86. 

The yield on 10-year German bonds edged higher to 2.21%, French bonds inched up to 2.94%, the UK gilts edged higher to 3.89%, and Italian bonds inched up to 3.59%.

Nibe Industries AB jumped 3.5% to SEK 48.86, and the sustainable energy products maker reported better-than-expected second quarter results. 

The heat pump maker said sales in the first half declined 16.8% to SEK 19.5 billion from SEK 23.5 billion, adjusted profit after tax dropped to SEK 250 million from SEK 2.5 billion, and earnings per share plunged to SEK 0.13 from SEK 1.28 a year ago. 

The company said sales were negatively affected by the lowering of inventories by distributors, but the company said demand is expected to "gradually improve" in the second half. 

Higher interest rates have negatively impacted the new construction of homes and commercial property, driving down the demand for the company's products. 

Bayer AG soared 11.1% to €29.19 after the German agrochemical company won a legal victory against U.S. claims that its Roundup weed killer caused cancer. 

An appeals court in Philadelphia, Pennsylvania, found that Monsanto Corporation, which the company acquired in 2018, failed to label that the company's products may cause cancer, violating state laws.

UBS AG increased 0.3% to CHF 26.32, and the Swiss bank announced its plans to close a $2 billion real estate fund acquired during the purchase of Credit Suisse.