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

European Stocks Edge Higher; Richemont Shines After Quarterly Report

Stock Markets Jul 16, 2021 03:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - European stock markets traded higher Friday, stabilizing after the previous session’s sharp Covid-inspired losses with investors focusing on corporate earnings and the latest Eurozone inflation data.

At 3:55 AM ET (0855 GMT), the DAX in Germany traded 0.2% higher, the CAC 40 in France rose 0.2% and the U.K.’s FTSE 100 climbed 0.6%.

The quarterly earnings season is kicking into full gear in Europe, and investors are expecting improvements as the continent reopens from the restrictions imposed to combat the pandemic.

Richemont (SIX:CFR) stock rose 2% after the luxury goods retailer reported its sales more than doubled in the three months to June 30, helped by a strong performance in the Americas from its jewellery brands.

German footwear retailer Puma (DE:PUMG) raised its 2021 sales outlook, boosted by strong second quarter demand, especially in North America. However, its stock fell 1.1% with investors seemingly wanting more. 

It was a similar story with Burberry (LON:BRBY), as the luxury fashion house reported that its like-for-like sales had risen above pre-pandemic levels for the 13 weeks to June 26, yet its stock fell 2.3%.

Ericsson (BS:ERICAs) stock slumped almost 10% with the Swedish telecommunications company reporting a sales drop in the important Chinese market, overshadowing a $8.3 billion multi-year 5G deal with U.S. giant Verizon Communications (NYSE:VZ).

Investors will also keep a close eye on the release of the latest consumer price inflation data from the Eurozone, ahead of next week’s policy-setting meeting by the European Central Bank.

The June CPI release, due at 5 AM ET (0900 GMT), is expected to see the annual figure fall back to +1.9%, dropping below the bank’s 2% target.

European markets struggled on Thursday, with the main indices all dropping around 1%, weighed down by concerns that rising Covid cases will stunt global growth just as central banks start to fret about soaring inflation. 

Earlier Friday, the Bank of Japan downgraded its real GDP forecast for 2021 while keeping its monetary policy unchanged, now expecting growth of 3.8% compared with the 4.0% forecast it made in April.  

Elsewhere, oil prices slipped marginally lower Friday, heading towards their worst week since mid-March on worries that the surge in new Covid-19 cases globally will hit demand, while the likelihood of a new OPEC+ production deal may lift supply at the same time.

At 3:55 AM ET, U.S. crude futures traded 0.1% lower at $71.62 a barrel, on course to fall almost 4% this week, while the Brent contract fell 0.1% to $73.44, set to drop almost 3% this week.

Additionally, gold futures fell 0.3% to $1,823.55/oz, heading for its fourth consecutive weekly gain, while EUR/USD traded 0.1% lower at 1.1802.


European Stocks Edge Higher; Richemont Shines After Quarterly Report

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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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?
Replace the attached chart with a new chart ?
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'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
Continue with Google
Sign up with Email