Europe Movers: Barratt Developments, Commerzbank, Direct Line Insurance, Oil Stocks, Semiconductor Stocks, Telia

Inga Muller
04 Sep, 2024
Frankfurt

European markets extended losses amid economic growth worries in the U.S. and China. 

Private sector activities in the Euro Area accelerated in August, driven by an upturn in service sector activities. 

The DAX index decreased by 0.6% to 18,628.44; the CAC-40 index fell by 0.9% to 7,509.29; and the FTSE 100 index declined by 0.6% to 8,249.01. 

The yield on 10-year German bonds edged lower to 2.22%, French bonds inched down to 2.96%, the UK gilts edged down to 3.96%, and Italian bonds decreased to 3.63%.

Semiconductor companies led the decliners in Wednesday's trading, following heavy losses in the sector in New York on Tuesday. 

Market sentiment weakened after the U.S. Justice Department sent subpoenas to AI-chipmaker Nvidia as a part of its deepening probe into the company's antitrust practices. 

ASML Holding declined 5.4% to €737.10, STMicroelectronics dropped 2.5% to €26.67, and NXP Semiconductors plunged 5.4% to €211.0. 

Commerzbank AB dropped 1.8% to €12.85 after a Bloomberg report suggested that the German government is planning to sell between a 3% and 5% stake in the lender. 

Telia AB declined 0.5% to SEK 32.45, and the Swedish telecom company announced a restructuring plan. 

Direct Line Insurance Group declined 1.0% to 191.40 pence after the company reported weaker-than-expected first-half results. 

Oil explorers traded volatile for the second day in a row, and crude oil prices hovered near a nine-month low, weighed down by concerns over rising supply and a weakening demand outlook. 

BP plc decreased 0.1% to 415.95 pence, Shell PLC dropped 0.6% to 2,597.0 pence, and TotalEnergies edged up 0.1% to €60.59. 

Barratt Developments declined 2.2% to 509.0 pence, and the UK-based housebuilder said profit declined 75% in the year ending in June.