EUROPE MARKETS: European Stocks Edge Up As Earnings Reports Roll In
19 April 2018 - 7:28PM
Dow Jones News
By Carla Mozee, MarketWatch
Most European stock benchmarks moved modestly higher Thursday,
led by gains for commodity and industrial shares, as investors
waded through a pile of corporate earnings reports.
What indexes are doing
On the national indexes, France's CAC 40 index rose 0.2% to
5,388.44, and the U.K.'s FTSE 100 index picked up 0.2% to 7,333.71
(http://www.marketwatch.com/story/uk-stocks-climb-to-10-week-high-as-metals-prices-soar-2018-04-19).
Spain's IBEX 35 was up 0.2% to 9,876.40.
But Germany's DAX 30 index was off 0.2% at 12,566.94, with
shares of lender Deutsche Bank AG losing ground.
Overall, the Stoxx Europe 600 index was up less than 1 point at
381.87. That benchmark on Wednesday rose 0.3%
(http://www.marketwatch.com/story/european-stocks-head-higher-as-earnings-take-center-stage-2018-04-18),
marking a second straight advance.
The euro changed hands at $1.2387, up from $1.2376 on
Tuesday.
What's driving the market
Industrial and commodity shares were putting in the best
performances in European trade, with oil shares rising as oil and
Brent crude prices each gained about 1%. The Stoxx Europe 600
Industrial Goods and Services Index moved up 0.6%, and the Basic
Resources Index tacked on 0.4%.
Oil prices extended gains
(http://www.marketwatch.com/story/oil-hovers-at-3-12-year-high-as-investors-look-ahead-to-opec-meeting-2018-04-19),
trading at their highest since 2014, as supply data released
Wednesday showed an unexpected drop in U.S. crude stockpiles. As
well, traders are looking ahead to Friday's outcome of the joint
Organization of the Petroleum Exporting Countries and non-OPEC
ministerial monitoring committee meeting.
Meanwhile, concerns about U.S. sanctions on Moscow have lifted
prices for metals, including aluminum and nickel, which on
Wednesday rallied to a 3-year high
(http://www.marketwatch.com/story/nickel-prices-rally-to-a-3-year-high-on-growing-concerns-over-us-sanctions-on-russia-2018-04-18).
What strategists are saying
An oil price rally has "lit a fire under resource stocks and
commodity prices" after the Energy Information Administration said
oil inventories fell by 1.1 million barrels, Accendo Markets said
in a note Thursday.
"Saudi Arabia added further kindling to demand for crude by
indicating it would be happy for oil prices to reach as high as
$80-100 a barrel, indicating that the voluntary OPEC+ supply cap is
set to extend further," wrote Accendo analysts Mike van Dulken and
Artjom Hatsaturjants.
"White House indecision over a new round of Russia sanctions and
Venezuela's ongoing economic woes added to the supply uncertainty,"
they said.
Which data are in focus?
U.K. retail sales missed forecasts, falling 1.2% month-on-month
in March after cold weather last month kept shoppers home. Analysts
had expected sales to decline by 0.4%, according to FactSet.
The pound dropped to $1.4187 after the report, after trading as
high as $1.4220 earlier on Thursday.
Stocks in focus
In the industrials group, Schneider Electric SE (SU.FR) bulked
up 2.2%. The French energy management company said it is now
targeting the upper half of its 2018 organic growth objective.
Weir Group PLC shares (WEIR.LN) rose 5.6%. The London-listed
engineering company said it's purchasing U.S.-based ESCO Corp. in a
$1.05 billion deal
(http://www.marketwatch.com/story/weir-to-buy-esco-in-105-billion-deal-2018-04-19)
that Weir says will strengthen its mineral and oil-and-gas
offerings.
Publicis Groupe SA shares (PUB.FR) were pushed up 5.3% as the
advertising firm posted first-quarter organic revenue growth of
1.6%
(http://www.marketwatch.com/story/publicis-revenue-falls-despite-n-america-growth-2018-04-19),
compared with a contraction of 1.2% in the year-earlier period.
Deutsche Bank AG (DBK.XE)(DBK.XE) fell 0.6% after the lender
said Chief Operating Officer Kim Hammonds will leave the company
next month
(http://www.marketwatch.com/story/deutsche-bank-coo-to-leave-as-shakeup-continues-2018-04-19),
the latest executive to depart the embattled bank. Earlier this
month, Deutsche Bank named Christian Sewing to replace John Cryan
as CEO following weeks of management turmoil.
Unilever PLC shares (ULVR.LN) (ULVR.LN) were down 1.9% after the
maker of Dove soap and other consumer products said first-quarter
revenue fell 5.2%
(http://www.marketwatch.com/story/unilever-to-launch-6-billion-share-buyback-2018-04-19)
on adverse currency movements and the impact of disposals. The
company also said it's starting a share buyback program of up to 6
billion euros ($7.43 billion).
(END) Dow Jones Newswires
April 19, 2018 05:13 ET (09:13 GMT)
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