European Shares Rise On Earnings
European stocks were moving higher on Wednesday as inflation fears eased and investors cheered strong earnings updates from the likes of SAP and LVMH Moet Hennessey.
Benchmark U.S. Treasury yields extended their decline to mark a fresh three-week low after data showed U.S. inflation was not rising too fast as had been feared.
The pan European Stoxx 600 rose 0.2 percent to 436.70 after closing 0.1 percent higher in the previous session.
The German DAX was marginally higher, France’s CAC 40 index gained half a percent and the U.K.’s FTSE 100 was up 0.3 percent.
Commodity trader Glencore advanced 2.8 percent after Goldman Sachs upgraded the stock to “buy”.
Drug maker AstraZeneca gained 0.8 percent after China’s health regulator approved Tagrisso, its lung cancer treatment, as adjuvant treatment for patients with early-stage lung cancer.
easyJet shares jumped 3 percent. The low-cost airline expressed optimism that European travel markets will revive this summer.
Tesco lost about 3 percent after the grocery chain reported a fall in full-year pretax profit.
LVMH Moet Hennessey shares rose more than 3 percent. The luxury goods company reported consensus-beating first-quarter sales driven by strong performance by flagship brands. Shares of Compagnie Financiere Richemont added 2.8 percent.
Business software maker SAP surged 5.1 percent after lifting its full-year guidance, citing a sharp rise in new cloud business.
Similarly, plastics group Covestro AG rallied 2 percent after raising its earnings and operating cash flow guidance for 2021.
Credit Suisse shares were down 0.9 percent. The Swiss banking giant has flagged around $2.3 billion in problematic loans in its Greensill Capital funds.
In economic releases, Eurozone industrial output declined 1.0 percent month-on-month in February and fell 1.6 percent compared to February 2020, Eurostat said.
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