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Jan 25, 2017

European Markets at Close Report on January 25, 2017: European Markets Close Higher on Earnings; Logitech Up 15%; Deutshe Bank Rises 5%
Silvia Amaro, Sam Meredith
European markets closed higher on Wednesday as investors took cues from overseas markets and digested fresh earnings reports.

Mining stocks rise


FTSE FTSE 7168.72
18.38 0.26% 722000627
DAX DAX 11809.34
214.40 1.85% 96272666
CAC CAC 4882.53
52.50 1.09% 87555051
IBEX 35 IBEX 35 Idx 9548.40
161.20 1.72% 315645423

The pan-European Stoxx 600 provisionally ended 1.33 percent higher with almost all bourses and most sectors trading in positive territory. Basic resources were among the worst performers after key mining firms reported earnings. Fresnillo announced a 9.5 percent increase in its silver production during the fourth quarter of last year. Antofagasta reported a 13 percent rise in copper production compared to a year ago, slightly below expectations.
Banks ended the trading day as the best-performing stocks, jumping over 3 percent. According to Reuters, citing sources, Deutsche Bank is to announce a partial initial public offering of its asset management unit. Its shares were more than 5.7 percent higher. The bank declined to comment when contacted by CNBC.
Construction stocks and autos were also higher as investors see President Donald Trump implementing his election pledges.
Meanwhile in the U.S., the Dow Jones industrial average finally edged above the elusive 20,000 threshold and continued higher as investors digested a host of earnings reports.

Novartis shares rise

Looking at specific stocks, Logitech led the European benchmark, rising more than 15 percent, after stronger-than-expected results in its third quarter. It now expects retail sales to rise between 12 to 13 percent for its full fiscal year, that's more than its previous guidance of between 8 to 10 percent.
WH Smith shares were 5.8 percent higher after reporting higher expectations for its full-year profit.
The pharmaceutical firm Novartis reported Wednesday morning a core operating income that was down by 2 percent in its latest fiscal year due to "generic erosion and growth investments." Net income was higher by 1 percent. Its shares were up by 1.8 percent on Wednesday.

Meanwhile, the Spanish bank Santander said Wednesday that its net profit stood at 1.6 billion euros ($1.72 billion) in the fourth quarter, an increase from 25 million euros compared to a year ago. Its shares were among the best performers in early trade, up by more than 3.6 percent.

BT shares recover

Also, in corporate news, BT lost a fifth of its market value on Tuesday after reporting accounting problems in its Italian business. The British telecom company's shares started recovering during mid-morning trade.

Data released Wednesday showed German businesses slightly less optimistic about the next six months. The Ifo Business Climate Index fell to 109.8 points this month from 111.0 points in December. "Companies expressed greater satisfaction with their current business situation, but are less optimistic about their six-month business outlook. The German economy made a less confident start to the year," the institute said in a statement.
Governor Mark Carney of the Bank of England is due to speak in Germany at a Bundesbank conference. Meanwhile, a member of the European Central Bank, Sabine Lautenschlaeger, said Tuesday that the bank could "soon" start planning tapering its monetary stimulus, Reuters reported.
Oil and gas stocks are also on the radar this Wednesday after U.S. President Donald Trump signed orders for new oil pipelines in the country. The sector in Europe was up by 0.73 percent.