European stocks rise as corporate updates lift sentiment
Reuters
Published Jan 16, 2018 10:11
European stocks rise as corporate updates lift sentiment
By Julien Ponthus
LONDON (Reuters) - European shares rose on Tuesday after corporate trading updates lifted sentiment, with Peugeot owner PSA Group outperforming after reporting a jump in sales last year.
The pan-European STOXX 600 (STOXX) index was up 0.2 percent by 0930 GMT with most indexes and sectors across the continent trading firmly in positive territory as the euro gave up some of its strength against the dollar.
Germany's DAX (GDAXI) added 0.4 percent and fashion house Hugo Boss (DE:BOSSn) rose about 1.9 percent after it reported a rebound in growth at its own stores, a jump in online sales and a recovery in the United States.
"This confirms our view that the group’s implemented restructuring and self-help measures are showing gradual operating improvements and this is leading to better momentum," Baader Helvea analysts said.
Germany's Continental AG (DE:CONG) was up 1 percent after sources told Reuters the auto parts maker had hired JP Morgan (N:JPM) to advise on a possible break-up.
Deutsche Bank (DE:DBKGn), on the other hand, lost 1.2 percent after it was accused in a lawsuit of conspiring to rig a Canadian benchmark rate. Deutsche Bank declined to comment on Monday.
France's CAC 40 (FCHI) rose 0.2 percent with French carmaker and Peugeot-brand owner PSA Group (PA:PEUP) up 1.2 percent after reporting a 15.4 percent jump in worldwide sales for 2017.
French utility Engie (PA:ENGIE) also gained, rising 1 percent after the company said it hoped to improve earnings growth in its core businesses of renewable energy, grids and energy services this year. Core earnings rose an estimated 5 percent in 2017.
The FTSE 100 (FTSE) moved into positive territory after UK inflation slowed in December from its 3.1 percent November peak.
GKN (L:GKN) rose about 1 percent as it faces continued pressure from activist fund Elliott to engage with its would-be suitor Melrose (L:MRON).
Provident (L:PFG) fell 2.7 percent after it said it expected to report a loss of about 120 million pounds at its consumer credit division - the upper end of its guidance.
Among midcaps, JD Sports Fashion (L:JD) was the best performer, jumping 6.4 percent after Britain's largest sportswear retailer by market value forecast annual pretax profit ahead of market expectations.
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Milan's FTMIB (FTMIB) also rose 0.2 percent, but Fiat Chrysler Automobiles (MI:FCHA) was at the bottom of the index, down 1.4 percent after the company's chief executive said he had no intention of breaking up the company.
Written By: Reuters
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