European Sharemarkets Suffer Mixed Results Amid Mergers and Earnings Reports

Strategic Insights -

European sharemarkets experienced mixed results on Wednesday, with various sectors affected by mergers, earnings reports, and softer US consumer sentiment. Airlines found strength following the Qantas bid news, while major players in the aerospace industry, such as Airbus and EADS, saw significant gains.

The Qantas bid news saw Lufthansa shares rise 1.9%, British Airways, which holds a stake in Qantas, rise 2.1%, and Air France/KLM shares rise 3.2%. Air France/KLM reports earnings tonight. Shares in Airbus owner EADS rose 5%, following Airbus's forecast of 22,700 aircraft orders over the next 15 years, driven by demand in China and India. In contrast, Boeing, which is focusing on smaller, more efficient aircraft, believes the number required will be much higher.

Key Takeaways:

  • European sharemarkets finished mixed on Wednesday, with softer US consumer sentiment affecting demand for stocks across the Atlantic.
  • Airlines found strength following the Qantas bid news, with Lufthansa, British Airways, and Air France/KLM shares rising 1.9%, 2.1%, and 3.2%, respectively.
  • Shares in Airbus owner EADS rose 5% following Airbus's forecast of 22,700 aircraft orders over the next 15 years, driven by demand in China and India.
  • The UK FTSE-100 Index dropped 42.3 points to 6160.3, while the German DAX Xetra index rose 15.74 points to 6476.13.
  • Imperial Chemical Industries jumped 9.3% after agreeing to sell its Quest flavours and fragrance business for 1.2 billion pounds to France's Givaudan.
  • Macquarie Bank was an earlier bidder for Techem, which rose 7.8% after the company supported the offer from BC Partners of 52 euros a share, valuing it at 1.29 billion euros.

Statistics:

  • The UK FTSE-100 Index dropped 42.3 points to 6160.3.
  • The German DAX Xetra index rose 15.74 points to 6476.13.
  • Airbus forecast 22,700 aircraft orders over the next 15 years.
  • Imperial Chemical Industries' Quest flavours and fragrance business sale is valued at 1.2 billion pounds.
  • Techem's offer was supported by BC Partners, valuing it at 1.29 billion euros.
  • Macquarie Bank was an earlier bidder for Techem, offering 44 euros a share.

Sources:

  • (RWE Aust Business News)
  • (RWE via COMTEX)