Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European shares flat as defensives offset upbeat earnings

Stock MarketsApr 29, 2020 05:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

By Sruthi Shankar

(Reuters) - European shares struggled to maintain early gains on Wednesday, as a slide in defensive stocks countered upbeat forecasts from German automakers and sensor specialist AMS as well as a bounce in oil prices.

The pan-European STOXX 600 (STOXX) rose as much as 0.3% but turned flat as healthcare (SXDP), technology (SX8P) and personal & household goods (SXQP) - sectors that have held steady in the wake of the health crisis - dropped between 0.3% and 1.4%.

London equities, however, outperformed their continental peers as lenders Barclays (L:BARC) and Standard Chartered (L:STAN) rose about 4% even as they set aside billions more to cover potential loan losses due to the pandemic.

Shares in BP (L:BP), Total (PA:TOTF) and Royal Dutch Sell (AS:RDSA) advanced between 1.9% and 3.5% as crude prices climbed on the back of a lower-than-expected rise in U.S. stockpiles.

European shares have recouped nearly half of their losses since the February rout as many countries move to restart their economies following weeks-long lockdown to curb the spread of the coronavirus.

With global economic activity nearly halted in April, analysts are, however, predicting a sharper slump in second-quarter earnings. Latest data from Refinitiv pointed to a 40.4% decline in profits during the period for companies listed on the STOXX 600 versus 37% a week ago.

"We saw a bear market rally and this might come to an end soon," said Christian Stocker, an equity strategist at Unicredit (MI:CRDI).

Stocker added it might be too early to step back into cyclical sectors. "I want to see some light at the end of tunnel - all the hopes for easing of lockdown should come to benefit," he said.

All eyes will be on first-quarter GDP figures for the United States and the release of the U.S. Federal Reserve's statement later in the day. Expectations are also high for more stimulus from the European Central Bank, which is due to meet on Thursday.

Sensor specialist AMS (S:AMS) jumped 17.3% to the top of STOXX 600 as it expects the impact from the coronavirus in the second quarter to be limited.

Automakers (SXAP) were buoyed after German carmaker Daimler (DE:DAIGn) forecast operating profit at its Mercedes-Benz Cars (NYSE:CARS) & Vans division to be above the prior-year level and rival Volkswagen (DE:VOWG_p) said it expected to be profitable on a full-year basis.

Shares in Finnish flag carrier Finnair (HE:FIA1S) tumbled nearly 14% as it planned to raise 500 million euros ($543 million) through stock offering after reporting deepening first-quarter losses.

Italian stocks (FTMIB) rose 0.6%, shrugging of rating agency Fitch downgrading the country's credit rating to "BBB-minus" on Tuesday, just one notch above junk.

European shares flat as defensives offset upbeat earnings
 

Related Articles

Altria Earnings, Revenue Beat in Q4
Altria Earnings, Revenue Beat in Q4 By Investing.com - Jan 27, 2022

Investing.com - Altria (NYSE:MO) reported on Thursday fourth quarter earnings that beat analysts' forecasts and revenue that topped expectations. Altria announced earnings per...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email