Portfolio

Europe close: Markets buoyant amid slew of solid earnings

By Josh White

Date: Tuesday 23 Jul 2019

Europe close: Markets buoyant amid slew of solid earnings

(Sharecast News) - European shares closed in the green on Tuesday, as solid corporate earnings and a strong session on Asian markets provided impetus.
The pan-European Stoxx 600 ended the day up 0.98% at 391.64.

In Frankfurt, the DAX was up 1.64% at 12,490.74, while the CAC 40 in Paris added 0.92% to 5,618.16 and Madrid's IBEX 35 rose 1.29% to 9,281.60.

Italy's FTSE MIB was 1.01% firmer at 21,954.66, while back in London, the FTSE 100 ended the day 0.56% stronger at 7,556.86.

The pound was 0.26% weaker against the dollar at $1.2444, and 0.26% stronger on the euro at €1.1158.

Sterling had showed little reaction to the news of Johnson's victory when it was announced just after midday, which had been widely expected.

Hopes that the European Central Bank will cut interest rates on Thursday by 10 basis points to boost economic growth also fed into the positive sentiment.

Some expectations still remain that the bank may set the stage for a September cut.

On the corporate front, positive results from Swiss bank UBS saw its stock rise 2.62%, with Apple supplier AMS surging 8.03% on a similar basis.

Spain's Banco Santander was 3.65% higher despite an 18% slump in second quarter net earnings.

French auto supplier Faurecia was ahead 11.49% as it maintained first-half profitability, with peer Continental up 6.31%.

Daimler shares rose 4.35% on the news that China's Beijing Automotive Group had bought a 5% stake in the company.

Smith & Nephew was ahead 0.6% after an upgrade to 'buy' at Berenberg, while insurer Beazley advanced 5.22% as it said first-half earnings nearly tripled compared to last year and it expects double-digit premium growth over the year.

On the downside, Premier Inn owner Whitbread was 3.03% weaker after a downgrade to 'underperform' at Bernstein.

Tesco, J Sainsbury and Wm Morrison were all in the red by 2.25%, 1.74% 0.53% respectively, as the latest data from market research firm Kantar showed that sales at Britain's big four supermarkets dipped 0.5% on the year over the last 12-week period, marking the first overall decline in the supermarket sector since June 2016.

Online trading platform IG Group finished flat, paring its earlier losses after it reported a drop in annual profit as it took a hit from the implementation of tougher regulations.

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