Aug 8, 2019

Europe | Europe Markets Closing Report on August 8, 2019: European stocks close higher as sharp fall in global bond yields stabilizes

Elliot Smith

European stocks traded higher Thursday as investors swing back toward risk assets and digest a range of corporate earnings.

European Markets: FTSE, GDAXI, FCHI, IBEX

FTSEFTSE 100FTSE7264.5165.810.91490711948
The pan-European Stoxx 600 was up 1.3% during afternoon deals, with technology stocks climbing 1.8% as all sectors and major bourses traded in positive territory.
A sharp decline in bond yields stabilized late on Wednesday’s session to temper concerns over slowing economic growth. The sharp rally in fixed income caused a slide in equity markets in the previous session with investors fleeing to safe-haven assets.
Meanwhile, investors are also monitoring the yuan, after China’s central bank set the official reference rate for the Chinese currency at 7.0039 yuan per dollar on Thursday — the weakest level since April 21, 2008. Stocks in Asia traded higher Thursday afternoon as Chinese customs data showed a surprise jump in the country’s July exports despite its protracted trade war with the U.S.
Earnings are also in focus for major European corporates, after German submarines-to-elevators giant Thyssenkrupp posted a net loss of 94 million euros ($105.37 million) for the quarter and posted its fourth profit warning under current boss Guido Kerkhoff. The company’s stock traded 3.5% higher, however, as markets had apparently priced in the weak results.
Sportswear giant Adidas posted a second-quarter net profit of 531 million euros and backed its 2019 guidance, but reported disappointing second-quarter sales. Adidas shares were down 4% in afternoon trade.
Deutsche Telekom reported an increase of 7.1% for core profits, in line with expectations, and shares of Europe’s largest telecommunications provider slipped 0.5% on the results.
British telecommunications provider BT saw its stock fall 5.5% to second bottom of the Stoxx 600 after HSBC cut its price target, outpaced only by German lighting company Osram, which tumbled 7.8% after one of its top investors, Allianz Global Investors, rejected a takeover bid.
At the top of the European blue chip index, Carlsberg shares rose by 11% after the Danish beer company upgraded its 2019 earnings expectations.
British fund supermarket Hargreaves Lansdown climbed almost 10% after it overcame adverse publicity surrounding its promotion of a now-suspended fund from ailing star manager Neil Woodford to increase total full-year assets by 8.4%.

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