European defence and carmakers rise; UK banks drop

(AWP Alliance News) - The following stocks are the leading risers and fallers in Europe's major stock indices on Friday.

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CAC 40 WINNERS

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Renault SA, up 4.1% at EUR27.63, European carmakers from an EU-China deal curbing Chinese hybrid vehicle exports to Europe

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EssilorLuxottica SA, up 2.8% at EUR153.00

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Thales SA, up 2.5% at EUR233.35, European defence companies rise

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CAC 40 LOSERS

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Sanofi SA, down 1.1% at EUR71.60

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Schneider Electric SE, down 1.0% at EUR255.43

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Eurofins Scientific SE, down 0.9% at EUR78.14

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DAX 40 WINNERS

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Rheinmetall AG, up 4.6% at EUR1,074.70, EU Commission allocates EUR168 million to boost defence production

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Volkswagen AG, up 3.8% at EUR69.35

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Porsche Automobil Holding SE, up 3.0% at EUR25.28

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DAX 40 LOSERS

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Beiersdorf AG, down 0.8% at EUR81.26

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Infineon Technologies AG, down 0.2% at EUR52.26

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Merck KGaA, down 0.2% at EUR143.08

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FTSE 100 WINNERS

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WPP Group PLC, up 4.5% at 418.30p

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Babcock International Group PLC, up 3.6% at 961.60p

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Melrose Industries PLC, up 2.6% at 489.95p

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FTSE 100 LOSERS

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Lloyds Banking Group PLC, down 2.1% at 103.60p, UK Chancellor poised for tax raid on UK banks in budget

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NatWest Group PLC, down 1.9% at 661.00p

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Antofagasta PLC, down 1.9% at 3,362.00p

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MIB 40 WINNERS

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Brunello Cucinelli Spa, up 5.2% at EUR88.62, raises annual revenue growth forecast

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Leonardo Spa, up 3.9% at EUR49.99

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Fincantieri Spa, up 3.8% at EUR12.56

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MIB 40 LOSERS

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Terna Spa, down 0.5% at EUR9.36

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Snam Spa, down 0.3% at EUR5.78

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Recordati Spa, down 0.1% at EUR52.98

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SMI 20 WINNERS

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Compagnie Financiere Richemont SA, up 1.7% at CHF178.10

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Partners Group Holding AG, up 1.5% at CHF607.80

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Nestle SA, up 1.4% at CHF82.00

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SMI 20 LOSERS

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Novartis AG, down 0.8% at CHF124.55

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Roche Holding AG, down 0.6% at CHF383.80

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Lonza Group AG, down 0.2% at CHF602.10

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European stock movers in focus:

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Rheinmetall AG, up 4.6% at EUR1,074.70, 12-month range EUR900.20-EUR1,966.00. The German defence contractor rises alongside European defence stocks as EU leaders meet in Brussels for the European Council summit on Thursday and Friday. Discussions focus on Russia's aggression and accelerating the EU's defence-readiness agenda. The sector also benefits from the European Commission's allocation of EUR168.2 million under the European Defence Industry Programme, aimed at strengthening Europe's defence industrial capabilities.

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Renault SA, up 4.1% at EUR27.63, 12-month range EUR24.38-EUR37.97. The French carmaker rises alongside European automotive stocks, continuing to benefit from a recently finalised agreement between the EU and China that significantly reduces Chinese hybrid and plug-in hybrid vehicle exports to Europe. Sentiment is also supported by the Paris Motor Show, where manufacturers are showcasing their latest models and technologies.

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Lloyds Banking Group PLC, down 2.1% at 103.60, 12-month range 81.82p-117.90p. The lender falls alongside other UK banks following a Guardian report that Chancellor John Healey is preparing to raise taxes on the sector in his October 28 budget to help offset pressure on public finances from the Middle East conflict. According to the newspaper, one option under consideration is reversing cuts to the bank surcharge introduced by former chancellor Jeremy Hunt, potentially raising more than GBP2 billion annually. The surcharge currently stands at 3%, down from 8%, on top of the standard 25% corporation tax rate.

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Brunello Cucinelli Spa, up 5.2% at EUR88.62, 12-month range EUR69.02-EUR102.40. The Italian luxury fashion house raises its full-year revenue growth forecast to 12% at constant exchange rates from 10% to 11%, following strong sales in the first nine months of 2026. Revenue rises 10% to EUR1.12 billion from EUR1.02 billion a year earlier, or 13% at constant exchange rates, driven by robust demand across all regions, particularly the Americas and China. Third-quarter revenue grows 14% at constant exchange rates to EUR374.2 million. The company also reaffirms its expectation of around 10% revenue growth in 2027, supported by positive early orders for its spring-summer collections.

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Nestle SA, up 1.4% at CHF82.00, 12-month range CHF70.29-CHF87.09. JPMorgan upgrades the Swiss food and beverage giant to 'overweight' from 'neutral', raising its price target to CHF100 from CHF90. The broker expects Nestle to achieve organic sales growth of 4.2% in 2027, supported by improving volumes, a recovery in the US market and sustained growth in emerging markets. JPMorgan also forecasts an underlying trading operating profit margin of 17% and adjusted earnings per share growth of around 6% in 2027, which would mark the strongest performance since 2022.

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By Eva Castanedo, Alliance News senior economics reporter

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