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UPDATE 2-European luxury stocks sparkle, Wirecard weighs on Dax

Published 2019/01/30, 19:13
© Reuters.  UPDATE 2-European luxury stocks sparkle, Wirecard weighs on Dax

* Stronger results boost LVMH

* Luxury sector rides wave of relief

* Atos, Alten jump after results

* Wirecard plunges after FT report

(Adds closing prices)

By Helen Reid

LONDON, Jan 30 (Reuters) - Luxury stocks were a silver lining for European markets on Wednesday after strong results from LVMH LVMH.PA reassured investors, while looming U.S.-China trade talks kept trading muted and some earnings disappointments weighed.

Europe's STOXX 600 .STOXX traded sideways before closing up 0.25 percent and was on track for its best monthly performance since October 2015.

Britain's FTSE 100 .FTSE jumped 1.6 percent thanks to a weaker pound boosting London-listed multinational exporters.

German payments company Wirecard WDIG.DE was the worst performer on the pan-European index, falling 13.3 percent as it

denied a report in the Financial Times that alleged financial wrongdoing. .GDAXI was among the few regional indexes trading in negative territory and sent shares in the member of the blue-chip DAX sharply lower.

France's LVMH shares jumped 6.7 percent after upbeat results from the luxury conglomerate, which said it was "cautiously" confident as fourth-quarter sales held up despite fears of a China slowdown. healthy set of numbers, combined with a positive tone from management, should provide investors with much-needed comfort about the current trends in the luxury market," Berenberg analysts said.

Hermes HRMS.PA , Gucci owner Kering PRTP.PA , Moncler MONC.MI and Burberry BRBY.L were among the top boosts to the STOXX 600, rising 3.1 to 5.9 percent. Italy's Salvatore Ferragamo SFER.MI , which reported a drop in sales, climbed 1.5 percent as the LVMH beat lifted the luxury sector. conglomerate Siemens SIEGn.DE fell 0.7 percent as strong order intake softened the blow from weaker-than-expected first quarter industrial profit. order intake in 10 years will be viewed positively, but may be overshadowed by the margin miss in EM (Energy Management) and BT (Building Technologies)," UBS analysts said.

Shares in French IT consulting firm Atos ATOS.PA surged 6.6 percent after it said it would distribute 23.4 percent of shares in its subsidiary Worldline to shareholders.

Atos peer Alten LTEN.PA also gained 9.6 percent after it reported full-year revenue rose in 2018. drug ingredients maker Lonza LONN.S tumbled 7.3 percent after it said Chief Executive Richard Ridinger was retiring and reported sales below expectations. successfully executed a remarkable turnaround of Lonza so will be missed, and given Lonza is only part way through the mid-term outlook period the succession may be viewed as heightening uncertainty," Jefferies analysts said.

German chemicals group Covestro 1COV.DE was up 5.4 percent as traders and analysts said Chinese rival Wanhua hiked its prices for MDI - a material used in polyurethane foams. earnings growth expectations have come down in recent months.

European companies listed on the STOXX 600 index are currently expected to report 3.6 percent year-on-year earnings growth in the fourth quarter, sharply lower than the 4.8 percent forecast last week. see earnings growth expectations for 2019 as still too high. We're probably still between 8 or 9 percent growth for this year and that will probably have to come down to low-to-mid single digits," Britta Weidenbach, head of European equities at DWS, said.

"What is interesting is that some of the stocks already have been punished so hard in the recent downturn, especially at the end of last year, that actually they react rather positively to results that are, in a way, disappointing," Weidenbach said.

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