Continental Stock Soars 32% After Aumovio Spin-Off Amid European Market Gains

European markets opened higher on Friday as investors weighed trade developments and economic data across the region. The pan-European Stoxx 600 index rose 0.3% in early London trading, with most major sectors in positive territory. France’s CAC 40 climbed 0.65%, Italy’s FTSE MIB added 0.63%, while Germany’s DAX edged up 0.10%. The FTSE 100 in the UK was marginally lower. Investors were also looking ahead to a scheduled call between U.S. President Donald Trump and Chinese leader Xi Jinping following this week’s framework agreement on TikTok’s U.S. business.

Amid the broader market optimism, German auto parts giant Continental AG stole the spotlight. Its shares surged more than 32% in morning trading after the company successfully spun off its automotive division under the new name Aumovio. The newly listed firm gained an additional 5% in Frankfurt on Friday, reflecting strong investor confidence in the separate entities. Aumovio CEO Philipp von Hirschheydt told CNBC that the move would allow each company to react faster to market changes and focus more effectively on their core challenges.

However, the surge in Continental’s stock was tempered by a cautious note from analysts. Deutsche Bank cut its price target for Continental by 21% on Friday, citing the effects of the spin-off, forecast revisions and higher peer multiples. Analyst Christoph Laskawi maintained a “Hold” rating, estimating that only about 10% upside remains to the new target price of €63 ($74) per share, despite a strong debut for “RemainCo.”

Beyond Continental, trade tensions and policy shifts remained in focus for European investors. Maersk shares dropped 4.6% and logistics group Kuehne + Nagel fell 7% amid concerns about global shipping volumes ahead of Trump’s call with Xi. Meanwhile, hopes for a UK-US deal on steel and aluminium tariffs faded after Prime Minister Keir Starmer’s meeting with Trump produced no breakthrough. In the U.S., the Supreme Court set a November 5 hearing on the administration’s contested tariff regime after a federal appeals court ruled that many of the measures were illegal.

Investors also digested fresh economic data on Friday. Germany’s producer price index, UK retail sales and a French business confidence update were all due. In the UK, official figures showed public sector borrowing rose by £11.4 billion more than forecast between April and August — the second-highest for that period since records began in 1993, surpassed only during the pandemic. UK government borrowing costs rose as yields on 20- and 30-year gilts climbed 4 and 5 basis points, respectively. Across Asia, stocks traded mostly higher after the Bank of Japan left interest rates unchanged, while U.S. futures were flat following fresh all-time highs on Wall Street.

source: cnbc