European Markets Halt 3-Day Slide After Positive Quarterly Results, Renault and Barclays Shine

Bridgette Randall
24 Oct, 2024
London

European markets advanced in Thursday's trading as investors reacted positively to the latest batch of quarterly results. 

Benchmark indexes in Paris, London, Frankfurt, and Milan edged higher, and bond yields in the region hovered at a two-month low. 

Unilever, Renault, Sodexo, Danone, Symrise, Beiersdorf, Michelin, Indivior, Barclays, and Essentra traded higher after positive quarterly results. 

On the economic front, investors reviewed the latest update on business activity in the Euro Area. 

The HCOB Flash Eurozone Composite PMI inched up to 49.7 in October from a seven-month low of 49.6 in September, according to the latest data from S&P Global. 

Service sector activity growth eased slightly and manufacturing downturn softened in the month, driven by a soft demand outlook as new orders declined for the fifth month in a row. 

In Asia, market indexes in China declined after investors turned skeptical about the size of the possible fiscal stimulus and the lack of near-term catalysts for earnings. 

Benchmark indexes in Japan struggled to stay above the flatline ahead of the national election this Sunday, and the ruling Liberal Democratic Party may lose its majority. 

In New York, bond yields rose to a three-month high as traders scaled down bets for an aggressive interest rate cut over the remaining two policy meetings in 2024 amid robust economic data and stable labor market conditions. 

 

Europe Indexes and Yields

The DAX index increased by 0.6% to 19,505.26; the CAC-40 index rose by 0.8% to 7,556.14; and the FTSE 100 index advanced by 0.5% to 8,303.41. 

The yield on 10-year German bonds edged lower to 2.26%, French bonds inched higher to 2.98%, the UK gilts edged up to 4.23%, and Italian bonds decreased to 3.46%.

The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar strengthened to 86.54 Swiss cents.

Brent crude increased $0.85 to $75.81 a barrel, and the Dutch TTF natural gas rose by €0.72 to €42.18 per MWh. 

 

Europe Stock Movers

Barclays PLC jumped 3.9% to 247.40 pence after the UK-based bank reported better-than-expected third quarter results. 

Indivior PLC jumped 10% to 722.0 pence after the UK-based pharmaceutical company reported strong third-quarter results. 

Essentra PLC rose 0.8% to 152.20 pence after the essential components manufacturer reiterated that adjusted operating earnings in the fiscal year 2024 would be in line with market expectations. 

Anglo American plc advanced 4.3% to 2,422.50 pence after the resource company raised its annual production outlook for platinum and nickel.

The company estimated platinum production to reach between 3.7 and 3.9 million ounces and nickel production to advance to 38,000 to 39,000 tons, backed by stable production conditions at its mines in Brazil. 

Abrdn dropped 9.3% to 148.75 pence after the Scottish asset management company reported a larger-than-expected fund outflow in the third quarter. 

Renault SA gained 6.5% to €42.95 after the French automaker reported a rise in sales in the third quarter and reiterated its annual outlook. 

Hermes International jumped 1.6% to €2,093.0 after the French luxury goods maker reported an 11.3% increase in sales in the third quarter. 

Danone SA gained 2.4% to €65.50 after the French dairy product maker reported higher-than-expected organic sales growth in the third quarter. 

Michelin SA declined 5.7% to €31.87 after the French tire maker lowered its annual sales volume outlook.