Saturday 21 July 2018

Europe's bourses gain as results loom

Traders work on the floor at the opening bell of the Dow Industrial Average at the New York Stock Exchange
Traders work on the floor at the opening bell of the Dow Industrial Average at the New York Stock Exchange

Reuters

European shares edged higher yesterday as investors shifted from worrying about a trade war to focusing on a corporate earnings season expected to deliver solid results.

The pan-European Stoxx 600 index rose 0.45pc - in a sixth straight day of gains - as commodities shares supported the market in the face of rising protectionism.

Overall, analysts have been revising their earnings expectations higher for the Stoxx 600 before Europe's earnings season kicks off in earnest.

But yesterday, disappointing results caused the most eye-catching moves.

Meanwhile, fading concern over trade had pushed Wall Street and Asian stocks up overnight as well.

"It's more of an absence of bad news rather than outright positive news that has driven the trade story over the last few days," said Edward Park, investment director at Brooks Macdonald.

Oil stocks were the biggest boost to the index. Crude prices climbed on concern over potential supply shortages as Norwegian oil workers prepared to strike later yesterday.

Industrials stocks such as Siemens, Deutsche Post, and Safran - among the worst-hit by news of tariffs - also boosted the European index.

In Ireland, the ISEQ Overall Index failed to mirror gains by its European peers.

It fell 0.33pc to 6,989.93.

Gainers included property investment firm Ires Reit, which advanced 3.1pc to €1.40. Recruitment firm CPL Resources advanced 1.7pc to €5.90. Decliners included insurance firm FBD, which fell 3.6pc to €9.98. Ryanair was down 1.7pc at €15.09 as it faced into strike action.

The UK's FTSE-100 was flat. Germany's DAX was up 0.5pc and France's CAC-40 was up almost 0.7pc.

Irish Independent

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