😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

European stocks bounce back as strong earnings in focus

Published 2017/08/30, 09:28
Updated 2017/08/30, 09:30
© Reuters.  European stocks bounce back as strong earnings in focus

LONDON, Aug 30 (Reuters) - Investors piled back into European stocks on Wednesday, boosting indexes higher in a relief rally after geopolitical concerns caused a sharp dip across equity markets.

The pan-European STOXX 600 .STOXX gained 0.6 percent, recovering nearly all the ground lost in the previous session when North Korea's missile launch sparked a sell-off. zone stocks and blue-chips .STOXX50E rose in line.

Banking stocks .SX7P , which had led the risk-averse move lower on Tuesday, were the strongest performers, up 0.9 percent, helping Italy's bank-heavy index .FTMIB outperform.

Investors' focus turned back to encouraging earnings news on Wednesday, driving gains across all sectors.

Shares in German broadcaster RTL RRTL.DE jumped 6.3 percent to the top of the STOXX after it boosted second-quarter revenue, beating expectations despite an advertising market it called challenging. helped the media sector .SXMP gain 0.8 percent, recovering from the nine-month low hit in the previous session after broadcaster Prosiebensat PSMGn.DE cut its outlook for advertising revenues.

French medical equipment supplier Biomerieux BIOX.PA rose 3.4 percent after raising its 2017 forecasts, bolstered by a strong first half. first-half profit and growing business volume helped Swiss insurer Baloise BALN.S shares gain 5.2 percent. weak spot was Swedish property developer JM JM.ST whose shares sank 4.6 percent after Norwegian building association OBOS said it sold all its shares in the firm. European stocks have seen some sharp moves in recent weeks, punctuating an unusually calm year, sell-offs have tended to fizzle out as shares are supported by global investors' continued confidence in the region's economic growth and relatively cheap valuations compared to the U.S. market.

Earnings growth also provided support. With the majority of company reports through, Thomson Reuters data estimated earnings growth for the STOXX 600 at 16 percent year-on-year for the second quarter.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ European versus U.S. stock market valuations



Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.