European shares bounce from 22-month low as earnings flow in; Volvo hit
Reuters
Published Oct 16, 2018 08:36
European shares bounce from 22-month low as earnings flow in; Volvo hit
MILAN (Reuters) - European shares rose in early trading on Tuesday helped by stronger defensive stocks, as the focus turned to the start of the reporting season which is expected to deliver double-digit earnings growth for the third quarter.
The pan-European STOXX 600 (STOXX) index was up 0.2 percent by 0714 GMT, after hitting a 22-month low in the previous session on the back of risings U.S. Treasury yields and a mix of geopolitical tensions.
Defensive stocks such as utilities (SX6P) and telecoms (SXKP) led sectoral gainers with Italian utility Enel (MI:ENEI) up 3.4 percent and Germany's Deutsche Telekom (DE:DTEGn) up 1.4 percent.
Despite the bounce some caution remained after a turbulent week that saw the STOXX post its worst week since February.
"Investors are... struggling with the ongoing U.S.-China trade war, Brexit talks, Italy's budget clash with Brussels, EM slow down, and the most recent geopolitical tensions between Saudi Arabia and the U.S.," said FXTM strategist Hussein Sayed.
Meggitt (L:MGGT) was the biggest gainer in Europe, up 5.6 percent after the UK engineer upgraded its 2018 organic revenue growth guidance, boosted by higher demand for its wheels, brakes, fuel tanks and other aeroplane parts.
Merlin however fell 7.3 percent after its trading update.
Volvo (ST:VOLVb) fell 6.1 percent after the Swedish company warned that some truck engines could be exceeding emission limits because a component was degrading more quickly than expected.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.