European shares slipped in early trading on Monday with concerns over the trade war between the United States and China keeping investors jittery. Cable maker Nexans slipped after a profit warning.
The STOXX 600 was down 0.3 percent after its losses in Asia after US President Donald Trump intensified the trade tensions by pushing through the tariffs on Chinese imports, pushing Beijing to immediately respond with similar tariffs duties.
Among other national benchmarks, the UK’s FTSE 100 was flat. Germany’s DAX lost 0.5 percent, meanwhile.
France’s Nexans dropped 18.2 percent after it warned that an “abrupt deterioration” of its high-voltage activities would probably translate to lower profits for the full year. This warning also weight on its Italian rival Prysmian, which lost 2.2 percent.
French gas and power group Engie dropped 2.2 percent after saying unscheduled outages at its Belgian nuclear reactors will negatively impact its 2018 core and net profit, possibly reaching 250 million euros.
n gained 9 percent after Lufthansa stated that it was in contact with the Norwegian carrier over a potential team up. In relation to this, Lufthansa rose 0.3 percent.
Mid-sized bank Virgin Money jumped 1.6 percent after CYBG agreed a 1.7 billion-pound, all-share deal that lets it acquire its rival, result to the creation of Britain’s sixth-largest bank.
Aerospace supplier Cobham rocketed 6.6 percent after it received an upgrade from Morgan Stanley.
DS Smith Plc Revenue rises
Packaging group DS Smith Plc stated on Monday that its full-year profit gained 21 percent, pushed by acquisitions, high e-commerce demand, and bolstered volumes in European markets.
The company has become larger through acquisitions. However, it has struggled due to rising input costs that were triggered by a surge in paper and pulp prices, as well as a Chinese import ban.
In spite of the cost headwinds, DS Smith said that it has been seeing good recovery in paper cost increases in Western Europe. This region is a market that the company wants to boost by attempting a 1.9 billion-euro acquisition of its Spanish rival Europac.
“Like-for-like corrugated packaging volumes in the region (Western Europe) have been strong, with both France and Iberia gaining market share with pan-European and e-commerce customers,” said the company in a statement.
The company also said that corrugated box volume growth was at 5.2 percent, with the growth being seen in all regions.
The company said that the current year had started well. Its volume growth momentum continued from the last fiscal year.
The FTSE 100-listed business, which manufactures corrugated cardboard, recycled paper, and plastic packaging, serves European fast-moving consumer goods operators and competes with Smurfit Kappa Group Plc, Mondi Plc, and RPC Group Plc.
DS Smith’s adjusted pretax profit jumped to 473 million pounds in the year that ended April 30, from 391 million pounds a year ago.
The company supplies boxes to Amazon.com Inc and Next Plc. It said that its revenue reached 5.77 billion pounds from 4.78 billion pounds during the previous year.
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