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Market Update

European Markets Extend 5-Day Losses


Author: Sarla Buch
ticker.com
Last Update: 1:24 PM ET June 14 2016

4:00 PM Frankfurt Daetwyler agreed to acquire U.K.-based smaller rival Premier Farnell for 1.09 billion Swiss francs. GAM tumbled after the investment manager forecasted operating profit in the first-half to drop 50%. Ashtead profit surged 51% to 102 million.

European markets extended losses for the fifth day in a row and German Bund yields turned negative as investors searched for safety ahead of the Brexit decision.

The yield on 10-year Bund dropped to as low as -0.032% and the U.S. Treasury yields also dropped to a 4-year low on the prospect of no rate hike tomorrow.

In London trading, FTSE 100 index dropped 90.19 or 1.5% to 5,954.78 and in Frankfurt the DAX index slumped 144.73 or 1.5% to 9,512.71.

In Paris, CAC 40 index declined 98.05 or 2.3% to 4,128.97.

Daetwyler Holding AG slumped 2.3% to 136.80 Swiss Franc after the Switzerland-based technical and electronic components maker agreed to acquire the U.K.-based smaller rival Premier Farnell Plc for about 1.09 billion francs or $1.13 billion in an all-cash deal.

The transaction is expected to close in the fourth-quarter of this year.

Premier Farnell Plc stock in London Stock Exchange surged 50.2% to 164.05 pence.

GAM Holding tumbled 17.8% to 9.41 Swiss Franc after the Switzerland-based investment manager forecasted operating profit in the first-half to drop about 50% from the 101.5 million franc reported for the first-half of 2015.

Net management fees and commissions are also estimated to drop, mainly due to lower average assets under management and on a slight reduction in average management fee margin.

The investment company said performance fees in the first-half of 2016 is estimated to fall to approx 1 million franc compared to 44.1 million franc in the same period a year ago.

The Go-Ahead Group Plc plunged 17.9% to 1,998 pence after the U.K.-based public transport operator forecasted revenues in Bus segment in the year ending on September 8, 2016 to jump 2.1% to 100 million and the passenger count to increase to about 1.2%.

Ashtead Group Plc jumped 2.9% to 985.50 pence after the U.K.-based equipment rental company reported revenues in the fourth-quarter ending in April soared 18% from a year ago to 666 million.

Net income in the quarter surged 51.4% from a year ago to 102.2 million compared to 67.5 million and diluted earnings per share increased to 20.3 pence from 13.4 pence.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc