European markets close higher with the return of positive momentum; Delivery Hero down 15% – CNBC

European markets closed higher on Friday, regaining positive momentum as investors digested another round of earnings.

The pan-European Stoxx 600 index provisionally finished up around 1.2%, with construction and materials stocks leading the gains, up 2.1% for the session.

—Sam Meredith

Shares of Thyssenkrupp rose more than 9% on Friday, buoyed by news that the German conglomerate would sell 20% of its steel business to the energy company controlled by Czech billionaire Daniel Kretinsky.

The transaction is expected to be completed during the current financial year, subject to approval by the relevant authorities and the Thyssenkrupp Board of Directors. The parties did not disclose the amount of the transaction.

Thyssenkrupp said Friday the parties were in talks for Kretinsky’s EP Corporate Group to buy an additional 30% stake to form a 50-50 joint venture.

—Sam Meredith

The price index for personal consumption expenditures rose more than expected in March, the Commerce Department reported Friday.

The inflation measure rose 2.8% from a year ago, excluding food and energy. This figure is higher than the Dow Jones estimate of 2.7%.

Including food and energy, the price indicator increased by 2.7%, ahead of the estimate of 2.6%. Both metrics rose 0.3% and were in line with expectations on a monthly basis.

—Samantha Subin

Climate protection is the domain of politicians, not central bankers, and any notion that central bank policy can solve all the world’s problems must be avoided, Swiss National Bank President Thomas Jordan said on Friday. .

“It’s also important… we are serious and don’t give the impression that we can solve all the world’s problems with monetary policy,” Jordan said at the SNB shareholders’ meeting, reported Reuters.

The SNB takes into account the risks associated with its investments and has excluded certain sectors of activity such as coal producers, he stressed.

Climate activists protested at the BNS shareholders’ meeting on Friday, calling on the BNS to stop investing in companies they say are harmful to the environment and that practice fracking.

—Sophie Kiderlin

Euronext boss Stéphane Boujnah said on Friday that the long-awaited IPO of one of Europe’s biggest buyout firms shows the IPO market is back on track.

Shares of CVC Capital Partners, a Luxembourg private equity group listed in Amsterdam, jumped around 23% on Friday morning. The IPO is expected to be one of the largest in Europe this year.

“It’s a very strong signal of the return of IPOs in Europe, especially in continental Europe,” Euronext’s Boujnah told CNBC’s “Squawk Box Europe.”

“We have a very, very impressive pipeline for the coming months,” he added.

—Sam Meredith

NatWest’s European-traded shares were up 4.8% at 11:13 a.m. London time after the British lender said its profits fell less than expected in the first quarter.

Pre-tax operating profit was £1.3 billion ($1.63 billion) in the first three months of 2024, down 27% from the same period in 2023 .

Analysts had forecast pre-tax operating profit of £1.2 billion for the first quarter of 2024, according to Reuters.

—Sophie Kiderlin

European countries are likely to increase defense spending because there is an “aggressive neighbor to the east,” but more needs to be done, Micael Johansson, CEO of Swedish defense company Saab, told CNBC on Friday .

“We need to step up our efforts and create more resilience and deterrence,” he said on CNBC’s “Squawk Box Europe.”

Stepping up efforts means new capabilities must be created and new technologies adopted, Johansson said, with a focus on air defense systems.

Saab is investing heavily and steps are being taken to strengthen its capabilities, but longer-term commitments from European governments are needed, he added.

Saab released its first-quarter 2024 results on Friday. Its first-quarter operating profit jumped 28% to 1.19 billion crowns ($109 million), while its sales rose 24%, it said. the society.

Expected organic sales growth has been adjusted upwards from 12-16% previously to 15%-20%.

Johansson told CNBC that Saab is investing heavily to increase the capacity of its facilities.

“Next year we will be a little busy in terms of investments. We are investing heavily in our support weapons and munitions,” he said, adding that the number of employees had also increased.

—Sophie Kiderlin

NatWest reported a slightly smaller-than-expected 27% fall in first-quarter profits on Friday, as the British lender struggles to stave off competition from other savings and mortgage providers.

Pre-tax operating profit was £1.3 billion ($1.63 billion) for the first three months of the year, compared to £1.8 billion in the first quarter of 2023. An average of analyst forecasts was for pre-tax operating profit of £1.63 billion. 1.2 billion for the period, according to Reuters.

NatWest CEO Paul Thwaite said the results indicated consumer confidence was returning.

“Even as macroeconomic uncertainty persists, customer confidence and activity are improving, with loans and deposits increasing during the quarter and write-downs remaining low, reflecting the good diversification of our businesses,” he said in a statement.

Investors looking to gain exposure to China’s growing gaming industry should look specifically at two technologies, according to Goldman Sachs.

The investment bank expects “China to see faster growth from mid-2024, supported by game launches and a relaxed regulatory environment.”

Addressing opportunities for businesses, the Wall Street bank reported opportunities such as “an accelerating quarter with blockbuster title launches” in 2Q2023.

CNBC Pro subscribers can learn more here.

-Amala Balakrishner

Shares of popular sports and leisure brand Lululemon have fallen this year, significantly lagging the S&P 500.

Its shares, which were included in Wall Street’s index last October, are down about 28% since the start of the year.

Does that make it a good deal for investors right now? Jack Dwyer, CEO of Infusive Asset Management, weighs in.

CNBC Pro subscribers can learn more here.

— Weizhen Tan

European markets are expected to open in positive territory on Friday, recovering from a low during yesterday’s session.

Britain’s FTSE 100 index is expected to open 50 points higher at 8,124, Germany’s DAX up 62 points at 17,980, France’s CAC up 38 points at 8,049 and Italy’s FTSE MIB up 185 points to 33,857, according to IG data.

Corporate press releases should come from L’Oréal, TotalEnergies and NatWest. The published data includes household loans in Sweden and retail sales in Spain.

-Karen Gilchrist