Europe midday: Autos sputter on Tesla results; Husqvarna powers ahead

European shares were lower on Thursday as Nordic Semiconductor slumped on revenue declines and vehicle maker profits failed to impress investors with poor results from Tesla hitting sentiment.

The pan-regional Stoxx 600 was down 0.37% at midday MT with all major bourses in the red after a mixed session in Asia. Investors were also digesting a new poll suggesting the Federal Reserve will deliver another 25-basis point increase in May and then hold steady for the rest of the year with a ‘short and shallow’ US recession most likely”.

In economic news, German producer prices rose less than expected in March, posting the smallest year-on-year increase since June 2021, according to official data.

Producer prices of industrial products were up 7.5% on the same month last year, the Federal Statistical Office reported, against expectations of a 9.8% year-on-year rise.

Energy prices were still mainly responsible for the year-on-year increase, up 6.8%. Excluding energy, producer prices rose 7.9% in March on the year. Compared to February, prices fell by 2.6%, posting the sixth consecutive decline.

The statistics office added that the results were preliminary and would have to be revised because a price brake on electricity and gas that comes into effect in March distorts calculations.

In equity news, Nordic Semiconductor fell 18% as first-quarter sales declined by a fifth.

French car maker Renault was down almost 7%, despite reporting a 30% in first quarter revenues due to a rebound in sales and higher prices. The sentiment hit Stellantis and parts maker Faurecia.

Bucking the trend, Sweden's Volvo gained as lifted its outlook for key heavy-duty truck markets in Europe and North America this year as it reported a 32% year-on-year rise in order intake for the first quarter.

The fall in auto stocks decline follows Tesla results, which showed a fall in net income, and the company’s Tuesday announcement of further price cuts.

Swedish power tool maker Husqvarna climbed 5% after it posted record first-quarter results.

Sartorius, the German supplier of lab equipment, also fell sharply after it missed first-quarter estimates.

Shares in British manufacturer Melrose Industries gained 9% s it completed a demerger and reverse stock split.

Reporting by Frank Prenesti for Sharecast.com