Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Positive earnings reports lift European shares

Stock MarketsAug 05, 2020 04:40AM 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 rose on Wednesday as positive earnings and the huge quantities of stimulus coursing through the financial system again overshadowed concerns about the surge in coronavirus cases in Europe and the United States.

Sectors considered most exposed to an economic downturn such as travel & leisure (SXTP), mining (SXPP), oil & gas (SXEP) and industrial companies led the morning surge in Europe.

The broader pan-European STOXX 600 index (STOXX) rose 0.8%, while euro zone stocks (STOXXE) gained 1.0%.

Ahold Delhaize NV (AS:AD), a major operator of supermarket chains in the United States and Europe, hit a record high as it raised its 2020 sales outlook after coronavirus lockdowns drove more traffic through its stores and online delivery services.

German residential real estate company Vonovia (DE:VNAn) rose 3.2% as it announced an 8% rise in first-half core profits and confirmed its guidance for the year, boosting the sector (SX86P).

Bank of Ireland (I:BIRG) surged 10.5% after it said it was beginning to see some signs of recovery, while analysts pointed to an income outlook for 2020 that was better than indicated.

"Earnings season is helping support risk appetite as has economic data," said Edward Park, deputy chief investment officer at Brooks Macdonald Asset Management. "That seems enough at the moment to offset the uncertainty about the U.S. case growth and pickup in European cases."

A survey of purchasing managers earlier this week showed European manufacturing activity returned to a modest expansionary territory in July, however the rebound in the bloc's service industry was not as sharp as expected.

"Manufacturing PMIs earlier this week is certainly helping the cyclical story, but there is temporary nature to the current outperformance," said Park.

The positive mood helped investors look past a worsening of diplomatic ties between the United States and China and rising COVID-19 cases in parts of Europe and the United States.

Among the decliners, BMW (DE:BMWG) slid 2.5% as lockdowns pushed the carmaker to a second-quarter operating loss as deliveries of luxury cars fell by 25% during the period.

British life insurer Legal & General (L:LGEN) also fell 2.5% as it blamed the coronavirus pandemic for a 2% fall in first-half operating profit.

Companies listed on the STOXX 600 are expected to report a decline of 67.5% in second-quarter earnings, down from a drop of 58.3% forecast the week before, according to Refinitiv data.

Positive earnings reports lift European shares
 

Related Articles

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.
Comments (3)
Jan Buyle
Jan Buyle Aug 05, 2020 5:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"STOXX 600 are expected to report a decline of 67.5% in second-quarter earnings" and yet, stock markets are close to the levels before corona. Huh??
David David
David9 Aug 05, 2020 4:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
how do we know if these numbers were not fudge?
Nk bag holder
Nk bag holder Aug 05, 2020 4:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yea! No more stimulus needed.
 
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