Monday 19 November 2018

European shares extend rally as oil stocks climb higher

Traders work on the floor of the New York Stock Exchange. Photo: Reuters
Traders work on the floor of the New York Stock Exchange. Photo: Reuters

Helen Reid

European shares edged higher on Tuesday as global markets extended their recovery rally with investors putting trade war worries on the back burner for now as attention turned to a corporate earnings season expected to deliver solid results.

The pan-European STOXX 600 index rose 0.1pc by 07:30 GMT, set for its sixth straight day of gains as strong commodities sectors continued to support the market.

Oil stocks were the biggest boost to the index, up 0.9pc as crude prices climbed on concerns over potential supply shortages.

Disappointing results caused some of the most eye-catching falls in early trading.

Shares in interdealer broker TP ICAP sank as much as 30pc, hitting a two-year low after the firm announced its CEO would depart and cut its synergy targets for 2019, blaming Brexit-related costs.

Ocado shares fell 2.3pc after the online supermarket company said its 2018 pre-tax loss would exceed current market consensus, reporting first-half earnings dented by bigger investment spending.

Among notable gainers, speciality chemicals firm Wacker Chemie topped the STOXX with a 3.8pc gain after Societe Generale analysts raised the stock to buy from hold.

Shares in German wind turbine maker Nordex rose 4.5pc after the firm scored its biggest ever single contract, for a 595 megawatt wind turbine order in Brazil.

Biotech and pharma shares rose as M&A and drug trial results boosted some small-cap names in the sector.

UK specialist healthcare services firm Cambian soared 28pc to the top of the small-cap index after saying it received a $536m takeover offer from Caretech Holdings.

Switzerland-listed biotech firm Cassiopea jumped 37pc after positive trial results for its acne treatment cream Winlevi.

Reuters

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