European stock markets were in the red on Monday as electrical retailer Currys rejected a takeover bid from private equity firm Elliott Advisors. The FTSE 100 fell 0.2% at the opening, while Germany's DAX dropped 0.7% and the CAC in Paris was 0.3% lower. Currys stock fell over 11% after the open when it announced that Elliott had declined to make a formal takeover offer. Chinese conglomerate JD.com is among the other potential suitors, with a week to make an offer according to UK takeover rules. The losses in Europe followed selling in the US on Friday as stocks retreated from record highs following the jobs report [7415ff5f].
European stock markets were mixed on Monday as global leaders and policymakers made their way to the World Economic Forum (WEF) in Davos, Switzerland. The FTSE 100 in the UK was down 0.2%, while the DAX in Germany and the CAC in France rose 0.7% and 0.6% respectively. The pan-European Stoxx 600 was also up 0.5%. London's premier index was dragged down by declines in Burberry and Ocado stocks, which were both down more than 4%. The WEF in Davos will focus on a range of topics including AI and frontier tech [0126c52b]. European equity markets have continued the positive tone seen at the end of last week, amid confidence that central banks will start cutting interest rates this year as inflation retreats. German GDP data for 2023 is expected to show that the eurozone’s largest economy contracted last year. The World Economic Forum in Davos is expected to address subdued global growth prospects and uncertainty stemming from geopolitical strife, tight financing conditions, and the disruptive impact of artificial intelligence. Atos stock slumped 14% after the French technology company warned that its free cash flow would be slightly below its initial target for the second half of the year. Oil prices edged higher due to tensions in the Middle East, threatening disruptions to supplies through a key shipping route between Europe and Asia [dd574ec8]. European markets are expected to open positively. The FTSE 100 is expected to open 13 points higher, Germany's DAX up 72 points, France's CAC up 30 points, and Italy's FTSE MIB up 132 points [dd574ec8].
The FTSE 100 and European stocks were mixed on Tuesday after a reduction in China’s key interest rate failed to quench worries about the world’s second largest economy. London’s benchmark index was 0.1% down after opening as base metal miners were dragged by weaker copper prices. Germany's DAX dipped 0.3% and the CAC in Paris headed almost 0.2% into the green. The pan-European STOXX 600 was 0.2% lower in early trade. Wall Street is set to open lower later in New York as S&P 500 futures, Dow futures, and Nasdaq futures were all in the red. [852c21d8].
The FTSE 100 and European stocks are in a better mood than their US counterparts on Tuesday, starting the day in the green despite warnings on the UK government's fiscal plans. The FTSE 100 was up 0.1% in early trade, while Frankfurt's DAX ticked up 0.1% and the CAC in Paris hovered just above the flat line. The pan-European STOXX 600 was 0.1% higher in early trade. The moves come following a warning by the Institute for Fiscal Studies (IFS) that the UK government's tax cut plans for the spring budget could be unrealistic when considering national debt. The next Budget, due on 6 March, could be the final one before a general election [8f258530].
US hedge fund Elliott has abandoned its attempt to take Currys private after two bids were rejected. Elliott confirmed that it does not intend to make an offer for Currys. Chinese online shopping empire JD.com had also been exploring a takeover of Currys but has yet to make an offer. Currys' shares fell 11% after the decision was announced. Elliott raised its offer for Currys to 67p a share, valuing the business at around £756m, but the Currys board unanimously rejected the proposal. Currys is a London-listed retailer with 300 UK stores and employs over 15,000 people [2b79d342].
AO World, an electronics and appliances retailer, will provide its full-year results this Wednesday. Shares for AO World have reached a near-12 month peak following a company restructuring. While sales are projected to drop for the third consecutive year, profits are expected to rise by £8m. Currys, the top omnichannel retailer for electronics and appliances, will also release its full-year results on Thursday. Profits for the full year are expected between £115m and £120m excluding the Greece business, which was sold off in November 2023. Guidance for the next fiscal year is estimated at a pre-tax profit of £136m and the return of dividend payments at 1.3p a share [60a98723].