Frank Prenesti Sharecast News
03 May, 2024 11:59

Europe midday: Share extend gains; Aurubis slumps on UBS downgrade

European shares extended gains on Friday as corporate news just kept coming with investors cheering better-than-expected results from tech stalwart Apple and a report that Glencore was considering a rival bid for Anglo-American.

The benchmark Stoxx 600 index was up 0.37% to 505.85 with all major bourses up after a strong showing on Wall Street. Investors will also be eyeing US jobs data later in the day.

"European equities are on the rise as we head into the final session of the week, with the now commonplace gains for the FTSE 100 taking place alongside similar upside moves for the CAC and DAX," said Market Scope analyst Joshua Mahony.

"The European session looks likely to represent somewhat of a lull compared to the US with markets eagerly anticipating the latest jobs data released later today. "

"Nonetheless a surprise decline in French industrial production has served to highlight the ongoing challenge faced by the ECB, coming off the back of yesterday's ongoing manufacturing PMI contraction across the French, German, and eurozone economies."

Commodities giant Glencore is reportedly mulling an approach for Anglo American which has already rejected a $39bn offer from BHP Group. Shares in the takeover target were up 2.7% in London.

In economic news, European Central Bank policymaker Yannis Stournaras said the ECB is "most likely" to cut interest rates just three times this year as stronger-than-expected economic growth supports inflation.

Policy dove Stournaras, who called for a rate cut in June, said in an interview that an economic rebound in the first quarter of the year made three cuts more likely than four.

In equity news shares in Credit Agricole rose as the French bank posted a forecast-beating 55% jump in first-quarter net profit while rival Societe Generale was also higher as net income fell less than expected in the first three months of the year.

German consumer goods company Henkel gained 6% after slightly raising guidance for 2024, saying strong performance in the first quarter had boosted its sales and earnings outlook.

On the downside, Aurubis slumped more than 10% as UBS cut the German copper producer to 'sell' from 'buy', citing tightness in the copper concentrate market, uncertainty over capex and strategy due to management changes.

Reporting by Frank Prenesti for Sharecast.com

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