European Shares Gain On Strong Earnings, Fed Optimism

European Shares Gain On Strong Earnings, Fed Optimism

May 19, 2023

European stocks traded higher on Friday, with financials and luxury goods makers rising on the back of strong earnings.

Sentiment was also helped by optimism that the Federal Reserve would halt interest-rate increases in the next policy review in June.

In economic releases, the U.K. economy expanded for the second straight quarter, in line with expectations, though output shrunk unexpectedly in the month of March, preliminary data from the Office for National Statistics showed.

Gross domestic product grew 0.1 percent from the fourth quarter, when it expanded at the same pace.

Data out of France showed that consumer price inflation in the country accelerated slightly as initially estimated in April.

The consumer price index climbed 5.9 percent year-over-year in April, following a 5.7 percent rise in March, according to the statistical office Insee. That was in line with the flash data published on April 28.

The pan European STOXX 600 was up 0.7 percent at 466.96 after ending flat with a negative bias in the previous session.

The German DAX added 0.7 percent, France’s CAC 40 jumped 1.1 percent and the U.K.’s FTSE 100 was up 0.4 percent.

Swiss luxury goods group Richemont soared 9.4 percent as it posted record earnings, benefiting strongly from a return in business in China. Peers LVMH and Hermes both gained around 1.5 percent.

THG plunged 11 percent in London after the ecommerce technology group ended takeover talks with Apollo Global Management.

Insurer Beazley jumped 5.2 percent after reporting growth in Q1 gross premiums written.

French lender Societe Generale rallied 2.4 percent after reporting a rise in first-quarter net profit.

Reinsurer SCOR SE jumped more than 8 percent after its Q1 earnings beat forecasts.

German insurer Allianz was up half a percent after reporting a sharp rise in first-quarter net profit and confirming 2023 guidance.

Turbine manufacturer Nordex Group fell over 1 percent after posting a wider first-quarter loss on the back of higher costs.

Source: Read Full Article