Europe Movers: Bunzl, Flughafen Zuerich, Mining Companies, Rhienmetall, Sandvik

Inga Muller
27 Aug, 2024
Frankfurt

European markets lacked direction as investors reviewed the latest economic updates. 

Germany's second quarter GDP contracted as previously estimated, consumer morale worsened, and UK shop prices fell at the fastest pace in nearly three years.

The DAX index increased by 0.5% to 18,595.71; the CAC-40 index rose by 0.5% to 7,560.72; and the FTSE 100 index advanced by 0.3% to 8,312.02. 

The yield on 10-year German bonds edged higher to 2.28%, French bonds inched up to 3.01%, the UK gilts edged higher to 3.98%, and Italian bonds increased to 3.67%.

Flughafen Zuerich AG decreased after the Swiss airport operator reported weaker-than-expected first-half results. 

Sandvik AB decreased 0.2% to DKK 214.0, and the Swedish engineering company agreed to acquire Universal Field Robots. 

Mining companies advanced in London after copper futures prices advanced to a six-week high in the hopes of a rate cut by the U.S. Federal Reserve next week. 

Antofagasta increased 1.3% to 1,901.50 pence, Anglo American increased 2.3% to 2,302.50 pence, and Glencore added 0.4% to 412.80 pence. 

Rheinmetall AG decreased 0.4% to €532.80, and the arms and automotive company said it won an order to build exhaust gas recirculation valves for a "renowned car manufacturer."

Bunzl plc jumped 7% to 3,440.0 pence after the diversified distribution and outsourcing group reported better-than-expected first-half results and announced a stock buyback plan. 

Revenue in the first half decreased 3.3% to £5.7 billion from £5.9 billion; pre-tax profit dropped 11.9% to £279.4 million from £317.1 million; and earnings per share fell 16.4% to 59.2 pence from 70.8 pence a year ago.

The company also launched a £250 million stock repurchase plan to be completed before March 3, 2025. 

The diversified conglomerate increased its interim dividend by 10.4% to 21.1 pence from 18.2 pence a year earlier.