Europe Movers: Aerospace and Defense Stocks, Barratt Developments, Plus500, Redrow, Tech Stocks

Inga Muller
19 Aug, 2024
Frankfurt

European markets retained an upward bias after indexes advanced for four days in a row. 

Defense stocks were under pressure from the worry that Germany may halve its Ukraine defense spending amid broad budget spending cuts. 

The DAX index increased by 0.2% to 18,315.56; the CAC-40 index rose by 0.4% to 7,480.17; and the FTSE 100 index was nearly unchanged at 8,311.59. 

The yield on 10-year German bonds edged higher to 2.22%, French bonds inched up to 2.94%, the UK gilts edged higher to 3.91%, and Italian bonds inched up to 3.59%.

Aerospace and defense stocks led the decliners on a report that Germany is likely to cut its defense spending for military operations in Ukraine by half amid spending cuts. 

BAE Systems decreased 1.9% to 1,324.50 pence, Rolls Royce plunged 0.7% to 497.60 pence, MTU Aero Engines declined 0.3% to €267.90, and Rheinmetall AG fell 1.8% to €552.20. 

Plus500 Ltd. rose 5% to 2,555.59 pence after the online futures, options, and contract spread derivatives platform reported strong interim results and forecasted annual results to surpass market expectations. 

Barratt Developments rose 0.9% to 540.80 pence and Redrow plc increased 2.3% to 777.53 pence after two UK-based home builders said in joint statements that the merger deal is scheduled to be completed later this week. 

The weakness in tech stocks kept in check market gains in early trading despite the growing optimism that the U.S. Federal Reserve is more likely to cut interest rates between 50 basis points and 100 basis points before the year's end. 

SAP SE decreased 0.5% to €195.82, ASML Holding NV fell 1% to €195.82, BE Semiconductor edged higher by 0.8% to €122.05, and STMicroelectronics added 0.3% to €27.87.