Breaking News
0

European stocks shrug off trade rhetoric; Galapagos soars

Stock MarketsSep 12, 2018 05:12AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

By Helen Reid

LONDON (Reuters) - Oil and mining stocks led European shares higher on Wednesday as investors shrugged off a weaker session in Asia amid rising tensions between the United States and China.

The pan-European STOXX 600 (STOXX) and eurozone STOXX (STOXXE) were both up 0.5 percent by 0845 GMT, despite declines by Asian stocks after President Donald Trump said the United States was taking a "tough stance" with China on trade.

Oil stocks (SXEP) rose 1.6 percent after a drop in U.S. crude inventories pushed crude prices higher. Mining shares (SXPP) climbed 1.5 percent.

"We think it is likely that the equity market sell-off, particularly in the European time zone, will slow down or even temporarily reverse," said RBC strategists.

"While 'trade frictions' and a perception of slowing Asian markets as a result are easy culprits, there seems to be a lot of risk priced in at this stage too," they said.

Dutch biotech firm Galapagos (AS:GLPG) soared 16.7 percent to the top of the STOXX after positive trial results for a drug to treat rheumatoid arthritis.

Shares in Zara owner Inditex (MC:ITX) rose 2.9 percent to the top of Spain's IBEX (IBEX) after the fashion retailer said it expected profit margin growth in the second half.

Salvatore Ferragamo (MI:SFER) topped Italy's FTSE MIB (FTMIB) with a 5.2 percent rise. Traders cited rumors of a potential takeover. The family that controls the fashion group is not interested in selling its stake, a spokeswoman for the group said.

Hermes (PA:HRMS) shares rose 2 percent after the French handbag maker reported record first-half margins.

"Hermes delivered a solid set of results... Importantly, the company noted a positive contribution to profits from strong demand in China," Berenberg analysts wrote.

British energy provider SSE (L:SSE) sank 8 percent after it warned first-half profit would halve compared with last year, calling its financial performance "disappointing and regrettable".

Centrica (L:CNA), another power company, fell 3.1 percent.

Hexpol (ST:HPOLb) shares rose 5.4 percent after the Swedish chemicals company said it acquired U.S. rubber compounder Kirkhill Rubber.

Shares in payments processor Adyen (AS:ADYEN) rose 5.6 percent after the recently listed Dutch company said it has selected data platform company Looker to help grow its business.

Broker research moved some stocks. German utility E.ON (DE:EONGn) fell 2.5 percent to the bottom of the DAX after Morgan Stanley (NYSE:MS) analysts cut their target price on the stock.

Swiss chocolate maker Barry Callebaut (S:BARN) gained 6.3 percent after UBS analysts upgraded the stock to "neutral" from "sell".

"We undertook some supply chain checks and think Barry could sign new contracts soon, benefiting its volume growth in the next 12-18 months," UBS analysts wrote.

Overall, however, analysts are lowering earnings outlooks for MSCI Europe companies, as the second-quarter earnings season ends and investor attention turns to political risk.

European stocks shrug off trade rhetoric; Galapagos soars
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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