European Shares Rise Despite Weak Data, Mixed Earnings
European stocks rose notably on Tuesday to hit nine-week highs despite weak data and mixed earnings updates.
Regional markets followed Asian peers higher after the financial services royal commission refrained from recommending harsher measures against Australian banks.
U.S. stock futures were trading flat after Google parent Alphabet reported higher costs in the last three months of 2018.
Closer home, the pan European Stoxx 600 was up 0.7 percent at 362.58 in opening deals after closing up 0.1 percent in the previous session.
The German DAX was climbing 0.9 percent, France’s CAC 40 index was up 0.8 percent and the U.K.’s FTSE 100 was rallying 1.1 percent.
BP Plc soared 4.2 percent in London after it swung to a profit in the fourth quarter of 2018 and lifted dividend.
RhythmOne jumped 3.8 percent, a day after Taptica announced the acquisition of the company for $176 million in an all-stock deal.
Apple supplier AMS plunged over 12 percent. The company posted a sharp drop in its 2018 fourth-quarter adjusted net profit and flagged revenue drop in the first quarter of 2019 amid weak smartphone demand.
Danish jewelry manufacturer and retailer Pandora soared 14 percent after announcing a two-year transformation plan.
Indivior shares fell nearly 11 percent after an unfavorable U.S. court ruling in a case related to its best-selling opioid addiction drug Suboxone.
In economic releases, investors shrugged off data showing that growth in the euro zone almost stalled in January.
IHS Markit’s composite final PMI dipped to 51.0 in the month from December’s 51.1, its lowest reading since July 2013.
A measure of Euro zone retail sales also fell as expected in December amid declines in non-food sales and online purchases.
Elsewhere, U.K. service sector growth slowed more-than-expected in January, moving closer to stagnation, as new orders decreased for the first time in two-an-a-half years, preliminary data from IHS Markit showed.
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