Wednesday 28 September 2016

Earnings, oil, boost European shares

Published 27/04/2016 | 02:30

Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt. Photo: Reuters
Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt. Photo: Reuters

European equities rose for the first time in four days yesterday, boosted by earnings results including those from oil giant BP.

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Standard Chartered jumped 9.8pc to a four-month high, after reporting a surprise decline in loan impairments.

BP advanced 4.3pc after unexpectedly posting a profit, despite falling oil prices. Swedbank rose 3pc as net income beat analyst estimates.

"Earnings are doing pretty well," says Michael Woischneck, a fund manager at Lampe Asset Management in Germany. "But that's something that could change with just one word from a Fed governor. Although no changes are expected, wording at this week's meeting is key."

The US Federal Reserve holds a two-day meeting this week, which ends today.

Banks led gains in the Stoxx Europe 600 Index, which advanced 0.2pc at the close of trading and as much as 0.7pc earlier, after its first three-day drop in a month.

Despite a rally since the February low, investors have kept withdrawing money from the region's equity funds on scepticism about central bank stimulus amid analyst cuts in earnings projections.

They're now waiting for policy decisions from the Federal Reserve and Bank of Japan this week.

In Ireland, the ISEQ Overall Index closed almost 1.3pc higher yesterday at 6,226.15.

Shares in insulation maker Kingspan rose 2.4pc, or 53 cent, to €22.58.

Shares in hotel group Dalata surged 5.7pc to €4.43, while drinks maker C&C rose 1.8pc to €3.92.

The FTSE-100 was 0.38pc higher. Germany's DAX was 0.34pc lower, and France's CAC-40 shed 0.28pc.

Volkswagen advanced 1.6pc as deliveries rose in the first quarter, taking over Toyota's lead for global sales.

Bloomberg

Irish Independent

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