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 Higher; HSBC, AXA Earnings Boost Sentiment

Stock MarketsAug 02, 2021 04:03AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - European stock markets traded higher Monday, helped by strong results from banking giant HSBC and French insurer AXA as well as healthy German retail sales.

At 4:05 AM ET (0805 GMT), the DAX in Germany traded 0.5% higher, the CAC 40 in France rose 0.9% and the U.K.’s FTSE 100 climbed 1%.

This quarterly earnings season has generally been positive so far in Europe, and HSBC Holdings (LON:HSBA), Europe’s largest bank by assets, continued the theme Monday. The banking giant posted pretax profit for the first half of the year of $10.8 billion, more than double the performance for the same period last year. It also reinstated its dividend payments and released $700 million that had been set aside to cover potential bad loans. Its stock rose 1.2%.

Heineken (OTC:HEINY) stock slipped 0.1% after the world's second-largest brewer beat first-half earnings expectations, but warned of weakness in the rest of the year as costs cut into margins. The Dutch AEX index nonetheless hit a new all-time high, thanks to further strength in chipmaking names ASML and BE Semiconductor, and a rebound in Prosus (OTC:PROSF) stock. 

AXA (PA:AXAF) stock rose 3% after Europe’s second-largest insurer reported an 180% increase in net income in the first half, rebounding from last year's Covid-19 hit.

There was not such good news from Allianz (DE:ALVG), its stock falling 5.4% after the German insurer and asset manager warned of a potential hit as the U.S. Department of Justice began an investigation into its Structured Alpha Funds.

Elsewhere, aero-engineer Meggitt (LON:MGGT) stock soared 58% after U.S. firm Parker-Hannifin (NYSE:PH) said it would buy the U.K. rival in a deal that values it at 6.3 billion pounds ($8.76 billion).

In economic news, German retail sales rose 4.2% in June, much more than expected following an easing of Covid-19 restrictions, and followed an upwardly revised increase of 4.6% in May. 

German manufacturing PMI data also came in better than expected, rising to 65.9 in July, from 65.1, which bodes well for Europe as a whole as the German economy tends to be the region’s main driver.

Asia markets traded higher Monday, creating a positive handover for Europe, as Chinese equity markets stabilized after last week’s heavy selloff on the back of the crackdown by local regulators on the tech and education sectors. The tone was helped by a call from Chinese regulators for dialogue with their U.S. counterparts over Chinese companies' listings in the U.S.

Elsewhere, oil prices weakened Monday in response to the Chinese factory data slowing sharply in July, suggesting weakening economic growth in the largest crude importer in the world.

At 4:05 AM ET, U.S. crude futures traded 1.2% lower at $73.03 a barrel, while the Brent contract fell 1.2% to $74.53.

Additionally, gold futures fell 0.3% to $1,811.25/oz, while EUR/USD traded largely flat at 1.1867.


European Stocks Higher; HSBC, AXA Earnings Boost Sentiment

Related Articles

Brazil's sliding stock market makes M&A targets
Brazil's sliding stock market makes M&A targets By Reuters - Jan 24, 2022

By Carolina Mandl and Tatiana Bautzer SAO PAULO (Reuters) - A frenzy of talks for mergers and acquisitions has caught some Brazilian bankers off-guard in the early weeks of 2022. ...

Volkswagen meets European CO2 emissions targets
Volkswagen meets European CO2 emissions targets By Reuters - Jan 24, 2022

BERLIN (Reuters) - Volkswagen (DE:VOWG_p)'s carbon emissions from passenger vehicles in 2021 were around 2% under the European target limits at 118 grams per kilometre, according...

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
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
Sign up with Email