European markets close lower as investors digest fresh earnings; Anglo American up 16%

European stocks on Thursday provisionally closed 0.7% lower, with almost all sectors in negative territory.

Industrial stocks led the losses, down 2%, as healthcare added 0.2%.

— Sam Meredith

Shares of European online payments giant Adyen on Thursday fell more than 17% after the Dutch company reported weaker-than-expected first-quarter sales figures.

Adyen said net revenue rose 21% to 438 million euros ($469.3 million) over the first three months of the year, slightly below analyst expectations, Reuters reported, citing Degroof Petercam.

Shares of the Amsterdam-listed stock tumbled to the bottom of the pan-European Stoxx 600 on the news.

— Sam Meredith

U.S. gross domestic product slowed in the first quarter, the Bureau of Economic Analysis said Thursday, which weigh on stock futures before the opening bell.

GDP expanded 1.6% in the first quarter, while economists polled by Dow Jones forecast growth of 2.4%.

— Brian Evans

Shares of Deutsche Bank rebounded in afternoon deals, trading up 6% by 13:00 p.m. London time, as investors digested the bank’s better-than-expected first-quarter profit.

Deutsche Bank on Thursday reported net profit attributable to shareholders of 1.275 billion euros ($1.365 billion) for the first three months of the year, ahead of an aggregate analyst forecast of 1.23 billion euros, according to LSEG data.

The bank’s shares were down 1.4% earlier in the session as the market looked for signs of ongoing recovery in its investment banking unit.

— Karen Gilchrist

Shares of London-listed pharmaceutical company AstraZeneca rose on Thursday after the company announced its first-quarter results, trading 5.4% higher at 12:25 p.m. London time.

Total revenue jumped 19% year-on-year to $12.68 billion in the first quarter, the company said Thursday. Its oncology unit led the growth, soaring 26% in the first three months of the year.

AstraZeneca CEO Pascal Soriot told CNBC that the company’s first quarter had been “tremendous.”

“We continue to invest very substantially in our pipeline,” Soriot said, noting that research and development expenses grew 18% in the first quarter across business divisions.

— Sophie Kiderlin

Unilever shares continued their rise in late morning deals, trading up 5.5% by 11:00 a.m. London time, on strong first-quarter sales.

Chris Beckett, head of equity research at Quilter Cheviot, said in a note Thursday that the sales uptick indicated the company was “on the cusp” of a turnaround as its seeks to entice consumers back to its branded products.

“The new management has come in and is following the playbook set out by Proctor & Gamble – that is focus on large ‘power brands’ which can help drive growth. It’s early days but so far the strategy is working, and should this trend continue, then Unilever is on course for a re-rating by the market,” Beckett said.

“Unilever has had a lot of false dawns previously, but this time it feels there is more coherence behind the strategy. Expectations are low and easily clearable, so should we see this continue for a couple more quarters, momentum will begin to get behind the company once again,” he added.

— Karen Gilchrist

Shares of Unilever climbed 4% after the consumer goods company reported a larger-than-expected uptick in sales in the first quarter.

Sales rose 4.4% in the first three months of the year as CEO Hein Schumacher continues his plans to return shoppers to premium brands as inflationary pressures ease.

Meanwhile, Swiss food and drink company Nestle fell 3.8% after it reported a 5.9% fall in reported sales for the first quarter to 22.1 billion Swiss francs ($24.18 billion).

— Karen Gilchrist

European stocks opened slightly higher Wednesday, with the benchmark Stoxx 600 index down 0.2% by 8:15 a.m. London time.

The U.K.’s FTSE 100 climbed 0.5% after it snapped a five-day winning streak on Thursday, while France’s CAC 40 was 0.2% lower, and Germany’s DAX down 0.5%.

Mining firm Anglo American on Thursday said it had received an “unsolicited, non-binding and highly conditional combination proposal” for an all-share takeover by Australia’s BHP Group.

The proposal values Anglo American’s share capital at £31.1 billion ($38.87 billion). It would entail demergers of Anglo American’s shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders.

Anglo American said it was reviewing the proposal.

CNBC has reached out to BHP Group for comment.

— Jenni Reid

Food and drinks giant Nestle reported a 5.9% fall in reported sales for the first quarter to 22.1 billion Swiss francs ($24.18 billion), with a significant drag from the North American market.

Organic sales growth was 1.4%, below analyst expectations.

North America reported sales growth dropped 7.7%, while Europe fell 5%.

By product, prepared dishes and cooking aids had the sharpest declines, while pet care and confectionary saw solid growth.

The company reiterated its 2024 outlook for organic sales growth of around 4% and a “moderate increase” in its operating profit margin.

Barclays on Thursday reported first-quarter net income attributable to shareholders of £1.55 billion ($1.93 billion), beating expectations and returning the British lender to profit following a major strategic overhaul.

Analysts polled by Reuters had expected net profit attributable to shareholders of £1.29 billion for the quarter, according to LSEG data.

Net income for the first quarter 2023 was $1.78 billion.

Read more here.

— Karen Gilchrist

Deutsche Bank on Thursday reported 1.275 billion euros ($1.365 billion) in net profit attributable to shareholders in the first quarter, marking a 10% annual increase.

Analysts had forecast a result of 1.23 billion euros for the period, according to LSEG data.

Revenue rose 1% year on year to 7.8 billion euros, which the bank attributed to growth in commissions and fee income, along with strength in fixed income and currencies. The revenue print also came in ahead of an analyst forecast of 7.73 billion euros, according to LSEG.

— Jenni Reid

Attractive returns and the breadth of opportunities are among the many reasons why investors have historically preferred to invest in the U.S. over Europe.

One strategist, however is looking keenly at European equities, and notes that “Europe isn’t a boring market.”

There’s a huge element of growth, [and investors] just have to dig a little bit deeper than in the U.S. where it’s extremely easy to find the growth names at the moment,” Michael Field, Morningstar’s Europe Market Strategist said.

“Europe is structuring. If you look at the macroeconomic environment at the moment, there could potentially be a greater tailwind for European equities than those in the U.S.” he added, naming stocks he likes right now.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Bitcoin is set for more price gains later this year, even after a recent retreat in prices, according to Standard Chartered’s top crypto analyst.

Geoffrey Kendrick, head of foreign exchange research, West, and digital assets research at Standard Chartered, said in a research note this week that he sees bitcoin rising to $150,000 per coin, and ether hitting $8,000 by the end of 2024 — doubling down on a bullish prediction from the bank earlier this year. 

CNBC Pro subscribers can read more here.

— Ryan Browne