European markets closed higher Wednesday, rebounding from mixed trade seen earlier in the week.
The regional Stoxx 600 index rose 0.6% by the close, with mining stocks seeing a sharp turnaround to climb 1.6%. Autos also jumped 2.2% while oil and gas stocks dipped 0.9%.
Germany’s blue chip DAX index nudged slightly higher, extending the record level it closed at Tuesday.
EUROPEAN MARKETS
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| .FTSE | FTSE 100 | 7554.47 | 40.75 | 0.54 |
| .GDAXI | DAX | 16759.22 | 0 | 0 |
| .FCHI | CAC 40 Index | 7526.55 | 0 | 0 |
| .FTMIB | FTSE MIB | 30403.9 | 282.13 | 0.94 |
| .IBEX | IBEX 35 Idx | 10223.4 | 0 | 0 |
Travel group Tui led individual stock gains, up 14%, as investors assessed its sharp rise in full-year profit and its fresh forecast for operating profit to leap by at least 25% in 2024.
Retail stocks dipped as H&M fell 1.8% after Deutsche Bank analysts downgraded the stock from a hold to a sell.
Nokia continued to suffer, falling 6%, following news that U.S. telecom giant AT&T will partner with Ericsson on the rollout of a next-generation wireless network.
Positive momentum was seen elsewhere overnight. Asia-Pacific markets rebounded across the region, following a broad sell-off on Tuesday. Meanwhile, U.S. stocks turned positive in morning trade Wednesday after the S&P 500 and the Dow Jones Industrial Average slid for a second day Tuesday.
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WED, DEC 6 202310:19 AM EST
U.S. stocks move higher
U.S. stocks opened higher Wednesday as investors cheered economic data indicating inflation is falling.
The Dow Jones Industrial Average was 0.3% higher in early deals, while the S&P 500 and the Nasdaq were both up 0.4%.
— Karen Gilchrist
WED, DEC 6 20234:36 AM EST
Tui shares up 9% on full-year results, profit forecast
A Boeing 787 ‘Dreamliner’ plane with the logo of tourism giant TUI at Hanover airport in Langenhagen, central Germany.
JULIAN STRATENSCHULTE | AFP | Getty Images
Shares of Tui were 9.4% higher at 9:17 a.m. London time after the German travel group posted full-year results that showed underlying earnings before interest and taxes (EBIT) soared 139%.
Revenue rose 11% to 8.5 billion euros ($9.17 billion), while investors zeroed in on a forecast for EBIT to increase by at least 25% year on year in 2024.
Additional interest was generated by news that the company’s board is considering delisting from the London Stock Exchange and upgrading to a prime standard listing in Frankfurt in an effort to simplify its investment profile. It also cited potential “potential benefits to European Union airline ownership and control requirements,” along with efficiencies and reduced costs.
The decision will be discussed at Tui’s annual general meeting in February, and would require 75% shareholder approval.
The move would represent a significant blow to the U.K. bourse as it seeks to keep and attract new firms and revises its listing rules to increase its attractiveness.
TUI AG
TUI1-DE:XETRA
7.28UNCH (UNCH)
Last | 12/08/23 CET
Tui share price.
— Jenni Reid
WED, DEC 6 20233:36 AM EST
Europe stocks open higher
European stocks were cautiously higher early Wednesday, while sectors were mixed.
Mining stocks rose 1.8% after the Australian economy grew more than expected in the third quarter, as food and beverage stocks slipped 0.3%.
The U.K.’s FTSE 100 was up 0.4% as France’s CAC 40 and Germany’s DAX both rose by around 0.22%.
Europe Stoxx 600
.STOXX:STOXX
472.26UNCH (UNCH)
Last | 12/08/23 GMT
Stoxx 600 index.
— Jenni Reid
TUE, DEC 5 20237:10 PM EST
CNBC Pro: Eli Lilly vs. Novo Nordisk: The pros deliver their verdict on the viral weight-loss stocks
It has been quite a year for both Eli Lilly and Novo Nordisk given the boom in weight-loss drugs.
Stocks of both pharmaceutical companies have rallied this year. Shares in Eli Lilly are up around 60% year-to-date, while its Danish counterpart Novo Nordisk has seen a gain of around 50%.
Should investors buy either stock — or both? CNBC Pro subscribers can read what the market experts think more here.
— Amala Balakrishner
TUE, DEC 5 20237:10 PM EST
CNBC Pro: JPMorgan nailed its 2023 forecast for European stocks. Here’s its 2024 call
JPMorgan strategists are making a bold call for European stock market performance next year after calling it right in 2023.
The forecast comes from the same team of strategists who accurately predicted the MSCI Eurozone’s performance this year. They expected the index to rise 9.1% to close at 256 points by the end of December 2023 on a local currency basis. The index is currently at 266 points.
CNBC Pro subscribers can read more about their 2024 outlook here.
— Ganesh Rao
TUE, DEC 5 20237:10 PM EST
CNBC Pro: These 5 stocks are on Goldman’s European conviction list — and it gives one 130% upside
Goldman Sachs has unveiled its “conviction list” of its top stock picks in Europe for December — with one stock in particular standing out for its significant upside potential.
The Wall Street bank’s analysts see a 130% upside potential for the stock over the next 12 months as the company makes massive infrastructure investments that will improve its sustainable free cash flow.
Morgan Stanley and JPMorgan are also bullish on the same stock.
CNBC Pro subscribers can read more here.
— Ganesh Rao
WED, DEC 6 202311:45 PM EST
European markets: Here are the opening calls
European markets are set to open lower Thursday.
The U.K.’s FTSE 100 index is expected to open 39 points lower at 7,489, Germany’s DAX down 67 points at 16,615, France’s CAC down 26 points at 7,414 and Italy’s FTSE MIB down 159 points at 30,163, according to data from IG.
Revised third quarter gross domestic product data for the euro zone is due Thursday, as well as third-quarter employment figures for the single currency area. German industrial output for October is also due.
— Holly Ellyatt