European shares started the week on a lackluster note, with the pan-European STOXX 600 down 0.4% and on track for its biggest one-day percentage drop in a month. The technology sector was the biggest drag on the STOXX 600, pulled 2% lower by an 8.9% decline in shares of BE Semiconductor Industries. Europe's industrials sector was also among the top losers, while the mining index slipped 0.4%. In corporate updates, LEG Immobilien's shares rose 5.1% after reporting a full-year results beat and proposing a higher-than-expected dividend. Shares of Telecom Italia shed 4.6% after publication of details of the cashflow and debt level of the venture created by the planned sale of its fixed line network failed to convince investors. Shares in Italian regional utility A2A dropped 3.6% upon the signing of a $1.3 billion deal agreement to buy some electricity distribution networks from Enel. Portugal's PSI index ended up 0.1% after the centre-right Democratic Alliance won Portugal's general election, though well short of a governing majority. Investors are awaiting Tuesday's U.S. February inflation data and euro zone January industrial production print later in the week. Germany's 10-year bond yield edged up on Monday after suffering its biggest weekly fall since December last week. Market focus has now shifted to Tuesday's U.S. February inflation data for fresh cues on the timing of interest rate cuts. [7deb18d5] [39c6378e]
European shares opened higher on Thursday, supported by optimistic corporate updates. The pan-European STOXX 600 index was up 0.2%, hovering near record-high levels. The personal and household goods sub-index added 0.6% to be the top sectoral performer. Embracer saw a 6.1% spike after announcing an agreement to divest selected assets from Saber Interactive for $247 million. Shares of K&S rose 5.5% after beating expectations on annual results. Hapag-Lloyd posted an 83% decline in net profit for 2023 and cut its dividend by 85%. Investors are awaiting US economic data, including producer prices and retail sales numbers, which could impact hopes for a mid-year rate cut by the Federal Reserve. [f417770c]
Britain's main share indexes were mixed in early trading on Thursday as the effect of some positive earnings reports was offset by losses in stocks of companies trading ex-dividend. The exporter-heavy FTSE 100 was flat by 0814 GMT, and the domestically oriented FTSE 250 dipped 0.04% ahead of US economic data later in the day that could offer hints on the Federal Reserve's monetary easing plans. Shares of Anglo American fell 2.7%, while those of NatWest Group dropped 4.6% as they traded without entitlement for dividends. Deliveroo climbed 3.7% after the meal delivery firm reported better-than-expected core earnings and said it expects to generate positive cash flow. Vistry edged up 0.2% after the housebuilder said it would build more homes this year, encouraged by resilient demand for its affordable homes after its 2023 profit beat market expectations. Trainline Plc jumped 9.1% after the rail ticketing company's trading statement showed stronger UK sales. [fbef4ad5]
European shares hit new highs, with the pan-European STOXX 600 index rising by 0.3% and Germany's DAX index surging by 0.2%. Encavis shares surged by 26.8% after a takeover offer, while Lanxess shares dropped by 8.2% and Hapag-Lloyd reported an 83% decline in net profit. Investors are awaiting US economic data, including producer prices and retail sales figures, to gain insights into the economic health of the US and the potential for a mid-year rate cut by the Federal Reserve. The European Central Bank is also anticipated to initiate a rate cut cycle from June. Despite concerns about overbought market conditions, the STOXX 600 index has gained over 6.1% since the beginning of the year. [c832a549]
Britain's main share indexes were broadly unchanged on Thursday ahead of U.S. economic data that could offer cues on the path of interest rates. The exporter-heavy FTSE 100 hovered near nine-month highs hit on Wednesday, while the domestically oriented FTSE 250 edged up 0.1%. OSB Group slumped 16.5% after a profit margin warning. Trainline Plc jumped nearly 12% after raising its adjusted EBITDA forecast. Vistry rose 3% after announcing plans to build more homes this year. Shares of Anglo American fell 4%, while those of NatWest Group dropped 4.5%. Deliveroo edged up 1% after reporting better-than-expected core earnings. [7f10f30c]
London stocks closed lower as investors digested a spate of economic data in the US. The UK's FTSE 100 index closed 0.37% lower. US producer prices rose more than expected in February, while monthly retail sales recovered. These data are expected to influence upcoming interest rate decisions by the US Federal Reserve. In the UK, the house price balance improved in February. AstraZeneca agreed to acquire Amolyt Pharma for $1.05 billion. At closing, AstraZeneca lost 0.54%. [2f211438]
Vodafone investors will face a dividend cut next year as the telecoms giant unveiled a new payout policy alongside the sale of its Italy operation to Swisscom for €8 billion. The reduction in dividend income comes as Vodafone aims to focus on more profitable markets with stronger growth opportunities. The CEO of Vodafone, Margherita Della Valle, cited the excessive fragmentation of European telecoms markets as a hindrance to delivering returns in excess of the cost of capital. Meanwhile, the housebuilding industry is in focus following Berkeley's trading update and the launch of a competition inquiry into the Barratt-Redrow merger. In other news, McDonald's apologised to customers after an IT system outage affected its restaurants in the UK and Ireland. The number of company insolvencies in the UK rose by 17% in February compared to the previous year. Scottish Mortgage Investment Trust plans to buy back £1 billion of its own shares over the next two years. Money is flowing out of the London equities market at a record pace, with UK savers withdrawing £14 billion from UK equities last year. Investors in Scottish Mortgage Trust are set to receive a £1 billion payout. Arsenal drew Bayern Munich in the Champions League quarter-finals, and the Europa League draw is set to take place soon. William and Harry praised Diana's legacy for a charity's 25th anniversary. Various discount codes and promotions are available for hotels, ASOS, Travelodge, The Body Shop, and The Perfume Shop. [02619cbe]
Workers at Inditex's Zara and other big name stores protested outside the company shops across Spain on Friday to demand better benefits after the world's biggest retailer reported record profits and raised shareholder payouts. The protests were organised by Spain's two largest unions, UGT and CCOO, which want a bonus for Inditex workers with more than four years service and other benefits. Inditex, which has seen a strong performance on Spain's stock market over the past year, posted net profits of 5.4 billion euros ($5.9 billion) in 2023, up 30 percent from 4.1 billion euros, the previous record, in 2022. The company, whose eight brands include Pull and Bear and upmarket label Massimo Dutti, said it would pay shareholders a dividend of 1.54 euros, a 28 percent increase from 2022, and the highest in the group's history. [47e62872]
PVH Corp. shares plunged the most since 1987's Black Monday crash after the company gave full-year sales guidance that fell short of expectations. The clothier, which owns the Tommy Hilfiger and Calvin Klein brands, said it expects revenue this year to decrease 6% to 7%, compared with a 2% increase last year. The 23% decline as of 9:35 a.m. in New York was the biggest drop for PVH since Oct. 19, 1987. PVH has been working to execute a transformation plan focused on strengthening Calvin Klein and Tommy Hilfiger. In the fourth quarter, profitability exceeded the average analyst estimate, thanks in part to better inventory management. Still, revenue growth hasn't held up in some regions. Calvin Klein sales in North America fell 8% in the fourth quarter, driven by a decline in the wholesale business, while Tommy Hilfiger international revenue was down 1%. [ace1a64d]
Indivior, a pharmaceutical company, experienced a significant drop in its shares after issuing a profit warning. The company announced that its sales and profit for the year would be lower than expected, leading to a decrease of over 35% in its share price. Indivior revised its annual adjusted operating profit forecast to between $285 million and $320 million, down from the previous range of $330 million to $380 million. The downgrade was attributed to the elimination of COVID emergency measures related to automatic Medicaid coverage renewals. In addition, Indivior announced the discontinuation of sales of its schizophrenia drug Perseris and a reduction of about 130 jobs. Despite the profit warning, the company remains optimistic about its long-term outlook, citing the scale of the US opioid epidemic as a growth opportunity. Indivior recently moved its primary listing to the United States to take advantage of US market opportunities and investor base. [30dc5a53]
NoVavax, Inc. stock underperforms compared to competitors despite whether companies [836deafb]