European shares edge higher after breakthrough in Merkel migration row

European Stock Markets

European shares edged higher on Tuesday after German Chancellor Angela Merkel’s conservatives settled a row over migration and gave some respite to investors facing a rage of political worries including trade tensions with the United States. 

The pan-European STOXX 600 was up 0.6 percent by 0833 GMT with Germany's DAX .GDAXI posting the best performance with a 0.9 percent rise.

The dispute over immigration had threatened to topple Merkel’s fragile governing coalition but in a breakthrough late on Monday evening, her rebellious interior minister dropped his threat to resign after five hours of talks.

Asian shares, which had sustained heavy falls overnight, particularly in China, recouped some of their losses before European bourses opened, helping restore sentiment.

Chinese financial markets have been jittery ahead of a July 6 deadline, when the U.S. is set to slap tariffs on $34 billion worth of Chinese goods that Beijing has vowed to match with tariffs on U.S. products.

Miner Glencore fell more than 10 percent after it said a subsidiary had received a U.S. Department of Justice subpoena requesting documents and records on compliance with the Foreign Corrupt Practices Act and U.S. money-laundering statutes.

The documents requested from subsidiary Glencore Ltd relate to the group’s business in Nigeria, the Democratic Republic of Congo (DRC) and Venezuela from 2007 to present, Glencore said, adding it was reviewing the subpoena.

Another big faller was BE Semiconductor, the Dutch equipment maker (BESI.AS) lost over 8 percent after cutting revenue forecast.

Societe Generale (SOGN.PA) rose 1.3 percent and Commerzbank (CBKG.DE) up 2.1 percent after the latter agreed to sell its equity markets and commodities business (EMC) to the French bank.

Global stocks and dollar recover; Italy set for big weekly loss

Global Stock Markets

World shares steadied and the dollar resumed its rise on Friday after a wobble caused by U.S. President Donald Trump’s decision to cancel a summit with North Korea, though political risk put Italian markets on track for heavy weekly losses. 

Markets were soothed somewhat by the Pyongyang’s measured response to Trump’s announcement, with Vice Foreign Minister Kim Kye Gwan expressing hope for a “Trump formula” to resolve the standoff over its nuclear programme

North Korea tensions aside, markets’ appetite for risk was kept in check by concern over Italy’s president opposing the incoming coalition government’s plan to appoint a politically inexperienced eurosceptic as economy minister.

MSCI’s all-country equity index .MNIWD00000PUS was flat after three days of losses which put it on track for its second straight week in the red, while non-Japanese Asian equities .MIAPJ0000PUS also eked out 0.1 percent gains.

The Seoul index .KS11 pared falls of almost one percent to trade down 0.2 percent and the Korean won also firmed 0.3 percent to the dollar KRW=.

But despite Thursday’s Wall Street declines, there were no immediate signs of a broad sell-off with Wall Street’s volatility index .VIX ending at a four-month low.

She cited the example of Turkey and Italy where a stock and bond sell-off has not spilled much into other emerging economies or peripheral euro zone states such as Spain or Portugal.

European shares opened firmer .FTMIB but looked set for their first weekly drop since March, pressured by the Italy worries and signs the euro bloc's economic recovery continues to run out of steam.

Italian stocks, which saw record outflows in the past week, fell 0.3 percent and were set for their third straight week of losses .FTMIB

European carmakers’ shares .SXAP which fell heavily after Trump mooted possible tariff increases on imported cars, bounced after the comments drew criticism from U.S. business groups and members of his own party.

However, worry about Italy kept the euro under pressure. It fell 0.15 percent against the dollar, putting it on track for the sixth straight week of losses EUR=EBS, while the Swiss franc, traditionally seen as a safe-haven, is set for a fourth consecutive weekly gain against the single currency EURCHF=.

Also on the upside, the dollar rebounded 0.25 percent after touching two-week lows versus a basket of currencies .DXY on Thursday. However, it held under this week’s five-month highs.

The yen, another currency deemed to be a safe-haven asset, slipped 0.2 percent against the dollar, reversing gains seen after the summit cancellation. JPY=D3

The spread on 10-year respective bonds widened on Friday to 200 basis points (bps), having widened 30 bps this week. IT10YT=RR DE10YT=RR

German 10-year fell about 2 bps, tracking U.S. Treasuries where yields touched near two-week lows on Thursday.

For Europe, another potential headache are signs its growth recovery is running out of steam. Some relief on this front was provided by Germany’s Ifo business confidence index which held steady this month after falling for five straight months.

However, this week’s PMI business surveys indicated growth was slowing, with expansion at a 20-month low in Germany. UK data meanwhile confirmed first quarter growth at a lacklustre 0.1 percent.

With U.S. capital goods orders data due later in the day, Treasury yields stayed well off this month’s seven-year highs. US10YT=RR

Worries that investors could shift assets from emerging markets to higher-yielding U.S. bonds have been a major headwind for emerging markets this year.

Among them, Turkey has been the worst hit over concerns about the central bank’s ability to tame double-digit inflation because of political pressure from President Tayyip Erdogan, a self-described “enemy of interest rates”.

The Turkish lira has given up most of the gains made after the central bank’s emergency 300 bps rate rise on Wednesday and stood at flat against the dollar. It has fallen almost 15 percent this month.

Global stocks Mixed as Trade Worries Linger; Euro Gains

Global Stock Markets

European stocks climbed and U.S. futures were steady as a dose of calm returned to markets on Thursday, though concerns surrounding global trade were not far away. The yield on 10-year Treasuries edged back above 3 percent, while the euro and pound gained.

The Stoxx Europe 600 Index managed to claw back a little ground following Wednesday’s selloff, even as carmakers took a hit after President Donald Trump ordered a probe into automobile imports to the world’s biggest economy. That news also dragged the MSCI Asia Pacific Index lower. Major American equity benchmarks were poised to open little changed.

Sterling rallied thanks to an April retail sales beat, while the lira resumed its slump as traders weighed whether an emergency rate hike was enough to stem losses. Safe-haven assets including gold and Japan’s yen climbed. Oil slipped.

It’s been a torrid week across markets so far, with investors forced to navigate escalating geopolitical and trade risks, from Trump’s decision to back away from an agreement with China to North Korea warning of a “nuclear-to-nuclear showdown.” Questions are swirling around the Italian populist government’s economic policies, while Brexit negotiations loom large over British assets. Amid the noise, the impact of somewhat dovish minutes from the Federal Reserve appeared to fade.

Meanwhile, emerging-market currencies rose despite the lira move, and developing-nation stocks also advanced. The euro strengthened after falling to a six-month low as traders await the latest minutes from the ECB.

Stocks
The Stoxx Europe 600 Index climbed 0.3 percent as of 10:51 a.m. London time.
Futures on the S&P 500 Index increased less than 0.05 percent.
The U.K.’s FTSE 100 Index declined 0.1 percent.
Germany’s DAX Index advanced 0.1 percent.
The MSCI Emerging Market Index jumped 0.5 percent.
The MSCI Asia Pacific Index decreased 0.2 percent to the lowest in more than two weeks.

Currencies
The euro gained 0.3 percent to $1.173, the biggest climb in two weeks.
The British pound climbed 0.3 percent to $1.3392, the largest climb in more than five weeks.
The Japanese yen advanced 0.3 percent to 109.73 per dollar, the strongest in more than a week.
The Turkish lira decreased 2.4 percent to 4.6865 per dollar, the weakest on record.

Bonds
The yield on 10-year Treasuries advanced one basis point to 3.01 percent, the biggest gain in a week.
Germany’s 10-year yield gained one basis point to 0.52 percent.
Britain’s 10-year yield increased one basis point to 1.448 percent.
Italy’s 10-year yield decreased six basis points to 2.344 percent.

Commodities
West Texas Intermediate crude declined 0.7 percent to $71.32 a barrel, the lowest in more than a week on the biggest drop in almost two weeks.
Gold increased 0.2 percent to $1,296.34 an ounce, the highest in more than a week on the largest climb in two weeks.
Brent crude sank 1 percent to $79.00 a barrel, the biggest tumble in more than two weeks.

European shares bounces with nudge from financial and tech stocks

European Stock Markets

A bounce across financials and tech stocks helped European stocks nudge higher on Thursday, though carmakers’ shares came under pressure after the United States launched a probe into auto imports.

The pan-European STOXX 600 index was up 0.3 percent by 0857 GMT, after falling more than 1 percent from a 3 1/2-month peak in the previous session as worries over spending plans from Italy’s new coalition and global trade weighed on risky assets.

Concerns over a U.S.-China trade deal continued after U.S. President Donald Trump said that any deal would need “a different structure”.

German carmakers BMW (BMWG.DE), Daimler (DAIGn.DE) and Volkswagen (VOWG_p.DE) dropped 1.8 to 2.8 percent after the United States launched a national security investigation into car and truck imports that could lead to new U.S. tariffs.

Germany's benchmark DAX index .GDAXI inched 0.1 percent higher and Europe's autos sector .SXAP was the worst-performing, losing 1.4 percent.

But a bounce among financials and tech stocks helped European markets rise. Minutes from the U.S. Federal Reserve’s last meeting indicated that the central bank would maintain a gradual approach to rate hikes, something seen as supportive of risky assets.

Italy's FTSE MIB .FTMIB was up 0.9 percent after Italy's president invited political novice Giuseppe Conte to be prime minister.

Aryzta (ARYN.S) was a standout faller among individual stocks. Shares in the Swiss food company slumped 28 percent after the firm cut its full year earnings outlook once more.

Elsewhere shares in Deutsche Bank (DBKGn.DE) reversed slight gains from earlier on to trade 0.1 percent lower after the bank said it would cut thousands of staff in a revamp of its investment bank.

Deutsche Bank’s shares are down around 31 percent so far this year.

UK stocks were among the top gainers on the STOXX 600.

Industrial distribution firm Electrocomponents (ECM.L) jumped 9.7 percent after reporting double-digit growth in annual revenue and profit, while food ingredients firm Tate & Lyle (TATE.L) rose nearly 7 percent after posting higher annual profits.

Euro Gains, stocks fall following the Asian counterparts

European Stock Markets

Shares in Europe followed Asian counterparts lower as storm clouds gathered from Turkey to North Korea and data cast doubts on economic growth prospects for the euro area. Treasuries advanced with the dollar, while oil dropped with most commodities.

The Stoxx Europe 600 Index sank by the most in two months alongside U.S. equity-index futures, as optimism over U.S.-China trade talks faded together with prospects for President Donald Trump’s summit with North Korea’s leader.

Concerns over Turkey’s financial-market stability drove the lira to successive record lows and weighed on emerging-market assets. The yen and core European bonds gained with gold as traders sought havens after equity benchmarks from Hong Kong to Sydney declined.

The euro fell to a six-month trough as manufacturing data added to concern economic momentum is slowing, while the pound weakened and gilts climbed as U.K. inflation undershot expectations, denting prospects for rate increases.

Gloom is returning to global markets just as trade tensions between the U.S. and China appeared to be easing. U.S. stocks closed down Tuesday after Trump introduced uncertainty on a meeting with Kim Jong Un, while in Italy questions are swirling around the suitability of the nominated prime minister.

Monetary policy may provide a welcome distraction when the Federal Reserve releases minutes of its latest policy meeting on Wednesday.

Stocks
The Stoxx Europe 600 Index sank 1 percent as of 10:15 a.m. London time, the lowest in more than a week on the biggest tumble in two months.
The U.K.’s FTSE 100 Index sank 0.7 percent.
Germany’s DAX Index sank 1.5 percent.

Currencies
The euro fell 0.4 percent to $1.1735, the weakest in six months.
The British pound sank 0.5 percent to $1.3364, the weakest in five months.

Bonds
The yield on 10-year Treasuries decreased four basis points to 3.02 percent, the lowest in more than a week.
Germany’s 10-year yield dipped five basis points to 0.51 percent, the lowest in five weeks.
Britain’s 10-year yield decreased seven basis points to 1.523 percent, the largest tumble in two months.

Commodities
West Texas Intermediate crude decreased 0.5 percent to $71.85 a barrel, the biggest dip in more than a week.
Gold jumped 0.2 percent to $1,294.20 an ounce.
LME copper sank 2.1 percent to $6,831.00 per metric ton, the lowest in a week on the biggest tumble in almost four weeks.

European shares climbs to highest since February as Italy recovers

European Stock Markets

European shares touched their highest level since the start of February on Tuesday as autos and bank stocks climbed, and Italian shares recovered as the anti-establishment coalition’s government formation process stalled. 

The pan-European STOXX 600 rose 0.2 percent, extending Monday's gains as carmakers rose on a cut to Chinese tariffs. Italy's FTSE MIB .FTMIB gained 0.7 percent.

Volkswagen (VOWG_p.DE), BMW (BMWG.DE) and Daimler (DAIGn.DE) were among the biggest boosts to the STOXX, up 1 to 1.6 percent, after China said it would cut the import duty on passenger cars and auto parts from July 1.

Europe’s autos sector .SXAP climbed 0.7 percent and Italy’s Fiat Chrysler (FCHA.MI) also rose 1.3 percent, helping the Italian index gain 0.6 percent.

Italian bank stocks .FTIT8300 recovered as the anti-establishment 5Star and League parties’ government plans stalled. President Sergio Mattarella sought further consultations over their proposed prime minister, a political novice. [nL5N1SS1DE]

Some investors were doubtful a coalition government would be able to go ahead with their big spending plans that have spooked markets, sending Italian bond yields to their highest in more than a year.

Competitive pressures, and hopes of dealmaking, triggered strong single-stock and sector-wide moves.

Inmarsat (ISA.L) shares dropped 8.4 percent to the bottom of the STOXX after the International Maritime Organisation authorised competitor Iridium (IRDM.O) to provide maritime safety systems, threatening Inmarsat’s monopoly in maritime distress communications.

French telecoms stocks Bouygues (BOUY.PA), Orange (ORAN.PA) and Iliad (ILD.PA) all rose after the head of the country’s telecoms regulator reignited talk of possible mergers in the sector, in comments to Le Monde newspaper.

Altice (ATCA.AS) shares also rose on investors’ hopes for M&A, and as the stock readjusted to the separation of Altice USA from Altice NV. The telecoms sector rose 0.8 percent overall.

Banks HSBC (HSBA.L), Santander (SAN.MC), BNP Paribas (BNPP.PA) and UBS (UBSG.S) were also among top drivers, benefiting from the recent rise in bond yields.

Swiss industrial machinery firm Georg Fischer (FIN.S) jumped 7.7 percent after UBS upgraded the stock to a “buy”, saying the market is underestimating the company’s margins and earnings potential, helped by its diversification in different industrial products.

Overall Europe’s earnings performance has been relatively disappointing, particularly compared with a stellar quarter in the U.S.. Bank of America Merrill Lynch said the ratio of STOXX 600 companies beating earnings targets this quarter was the worst since 2013.

Stock and Oil Jumps With Dollar on Trade Truce

Global Stock Markets

The dollar strengthened against most major peers and U.S. equity futures rallied as the world’s two largest economies appeared to step back from the brink of a trade war. Treasury yields climbed, and European shares advanced.

The greenback rose as Treasury Secretary Steven Mnuchin said the U.S. was “putting the trade war on hold,” amid progress in talks with China. The euro headed for a sixth day of declines after Italy’s two populist parties agreed on a prime minister, while Italian bonds extended their decline. Travel companies and retailers led advances in the Stoxx Europe 600 Index, though a number of countries are out for a holiday. U.S. oil futures resumed a rally.

The easing protectionist tensions will offer some respite to traders as they grapple with the impact of rising Treasury yields and a stronger dollar. But the week ahead is loaded with risk events, including releases of the latest meeting minutes from both the Federal Reserve and European Central Bank, a slew of debt sales from the U.S., and preliminary purchasing manager indexes from the euro zone. Meanwhile, geopolitical stress lingers, with South Korea’s president visiting Washington to discuss North Korea and Brexit negotiations ongoing.

Elsewhere, emerging-market currencies continued to come under pressure, with Turkey’s lira falling 1.5 percent. Gold extended it’s decline to the lowest level this year.

Stocks
The Stoxx Europe 600 Index rose 0.4 percent as of 11:29 a.m. London time, to the highest in 16 weeks.
The MSCI All-Country World Index gained less than 0.05 percent.
Futures on the S&P 500 Index rose 0.6 percent to the highest in a week.
The U.K.’s FTSE 100 Index increased 0.8 percent to the highest on record.

Currencies
The euro declined 0.2 percent to $1.1748, reaching the weakest in more than five months on its sixth consecutive decline.
The British pound dipped 0.5 percent to $1.3407, the weakest in almost 21 weeks on the largest dip in almost three weeks.
South Africa’s rand decreased 0.3 percent to 12.8036 per dollar, the weakest in about five months.

Bonds
The yield on 10-year Treasuries increased two basis points to 3.07 percent.
Britain’s 10-year yield fell one basis point to 1.5 percent, the lowest in a week.
France’s 10-year yield declined less than one basis point to 0.829 percent, the lowest in more than a week.
Germany’s 10-year yield dipped two basis points to 0.56 percent, the lowest in more than a week.

Commodities
West Texas Intermediate crude gained 0.2 percent to $71.42 a barrel.
Gold fell 0.7 percent to $1,284.46 an ounce, the weakest in almost 21 weeks.
LME copper rose 0.8 percent to $6,909.00 per metric ton, the highest in more than a week on the largest advance in more than a week.

European shares rises with easing trade worries

European Stock Markets

European shares rose on Monday as easing trade war worries lifted the dollar, supporting exporters, while selling pressure on Italian stocks calmed down after a painful week, as markets awaited developments in the creation of a new government. 

The pan-European STOXX 600 index rose 0.4 percent by 0914 GMT, hovering near its highest level in over 3 months, while the FTSE 100 .FTSE hit a new record high, as strength in the dollar supported the internationally exposed index.

The dollar hit a fresh five-month high on relief that U.S. Treasury Secretary Steven Mnuchin declared the U.S.-China trade war “on hold” following their agreement to suspend the tariff threats.

While activity was reduced by the closure of some markets, including Germany, for Whit Monday, bargain hunting supported Italian stocks, even though some investors warned about the risk of rushing back into the market.

Italy’s anti-establishment 5-Star Movement and League parties will seek the backing of the president later on Monday for a prime minister to lead a government whose plans to jack up spending were roiling financial markets.

Shares in banks BPER Banca (EMII.MI) and UBI (UBI.MI) and carmaker Fiat Chrysler (FCHA.MI) were the top gainers on the FTSE MIB benchmark index, while only drugmaker Recordati (RECI.MI) traded in negative territory.

Italy's FTSE MIB .FTMIB benchmark index suffered its biggest one-week loss since early March on Friday on worries the new government could relax fiscal discipline.

On Monday the index was still down 0.5 percent but due to a number of stocks, including heavyweight bank Intesa Sanpaolo (ISP.MI), going ex-dividend. Stripping out that effect the FTSE MIB would be trading higher. Intesa rose 1.5 percent.

FTSE MIB futures IFSc1 rose 1.3 percent.

Elsewhere, Ryanair (RYA.I) fell as much as 3.1 percent at the open. The Irish airline reported a record annual profit as it brushed off a rostering mess-up that forced it to cancel flights and sparked a dispute with pilots, but warned profits would fall back in the coming year due to higher costs and no fare growth.

Its shares however pared all losses and rose 2.6 percent.

European shares weighed by BT, utilities, but banks gain

European Stock Markets

European shares steadied on Thursday as a flurry of company results rolled in with losses in BT following a disappointing update and weighed down further by a weakness among utilities stocks.

Gains in RBS (RBS.L) following a multi-billion deal to settle a U.S. investigation of the bank’s bond sales, and a solid update from Italy’s biggest bank UniCredit (CRDI.MI) buoyed the banking sector, helping the pan-European STOXX 600 steady by 0748 GMT.

BT (BT.L) shares fell 7.1 percent after saying it was cutting 13,000 jobs, the latest attempt by Britain’s biggest telecoms group to rebuild after an accounting scandal and a downturn in trading.

Traders said its latest update showed a disappointing guidance, while Jefferies analysts highlighted that the company missed on the opportunity of announcing a bolder mover of fiber roll out while job cuts were bigger then expected.


RBS rallied 5.5 percent after it agreed to pay a smaller-than-expected $4.9 billion to resolve a U.S. investigation into its sale of mortgage-backed securities.

Analysts, who had estimated the U.S. could impose a fine of up to $12 billion, said the bank could reinstate a dividend.

Gains in RBS helped the UK's FTSE .FTSE edge ahead 0.2 percent, outperforming other European bourses ahead of a Bank of England policy meeting expected to keep interest rates on hold.

Still in banks, UniCredit rose 2.7 percent after it posted its best first-quarter result since 2007, topping forecasts with a 1.1 billion euro net profit thanks to lower-than-expected loan losses.

Italy's FTSE MIB .FTMIB fell as much as 0.7 percent, as bond yields jumped on an increased possibility that a government of anti-establishment parties will take power. The index however recovered ground and was up 0.2 percent.

Top movers on the STOXX also included precious metals miner Randgold (RRS.L), down 6.6 percent after its quarterly profit fell, while Next (NXT.L) rose 5.7 percent after a strong outlook and trading update.

Utilities were a weak spot, down 0.8 percent to lead sectoral losers in Europe, weighed by a disappointing update at Italy’s Enel (RRS.L)

European Stocks decline while crude fell

European Stock Markets

European stocks declined on Tuesday despite broad advances in Asia, while crude fell as investors braced themselves for President Donald Trump’s decision on the Iran nuclear deal. The dollar reversed a drop to strengthen and Treasuries were steady.

The Stoxx Europe 600 Index slumped after two days of gains, dragged lower by oil and gas companies and miners.

Italian stocks were the worst performers in the region as the country looked set for fresh elections. U.S. futures also fell. West Texas crude traded below $70 a barrel, paring a rally that had brought it to the highest since 2014.

Worries about pricey stocks and rising borrowing costs that have roiled developed markets are migrating to the developing world, where higher Treasury yields and a stronger dollar could sap demand for emerging-market assets.

Trump’s foreign policies have further complicated the picture by stoking volatility in commodities.

He’ll announce on Tuesday whether the U.S. will pull out of a nuclear accord with Iran, potentially disrupting supplies from OPEC’s third-largest producer.

The MSCI Emerging Markets gauge climbed for a second day, led by technology stocks. Indonesia’s rupiah tumbled to its weakest since 2015, and the nation’s government bonds slumped. Turkey’s lira hit another low and the country’s benchmark equity index fell.

Stocks
The Stoxx Europe 600 Index declined 0.2 percent as of 10:39 a.m. London time.
The MSCI World Index of developed countries fell 0.1 percent.
The MSCI Asia Pacific Index climbed 0.4 percent to the highest in a week on the largest increase in more than a week.
Japan’s Nikkei 225 Stock Average jumped 0.2 percent, reaching the highest in three months on the first advance in a week and the biggest increase in more than a week.
The MSCI Emerging Market Index jumped 0.3 percent.
The U.K.’s FTSE 100 Index climbed 0.1 percent to the highest in 14 weeks.
Futures on the S&P 500 Index sank 0.3 percent.

Currencies
The Bloomberg Dollar Spot Index climbed 0.2 percent to the highest in almost 19 weeks.
The euro dipped 0.3 percent to $1.1884, the weakest in 19 weeks.
The British pound declined 0.3 percent to $1.3512, the weakest in almost four months on the biggest fall in a week.
The Japanese yen advanced 0.1 percent to 109.03 per dollar, hitting the strongest in two weeks with its fifth straight advance.

Bonds
The yield on 10-year Treasuries climbed less than one basis point to 2.95 percent.
Germany’s 10-year yield climbed one basis point to 0.54 percent.
Britain’s 10-year yield increased one basis point to 1.406 percent.

Commodities
West Texas Intermediate crude decreased 1.2 percent to $69.86 a barrel, the first retreat in a week.
Gold fell 0.3 percent to $1,310.00 an ounce, the biggest fall in a week.

European edges fifth week of gains as tech stocks buoy

European Stock Markets

Well-received results from Spanish banks and a recovery among tech stocks buoyed European shares in early trading on Friday, setting them up for their fifth week of gains in a row. 

The pan-European STOXX 600 index was up 0.1 percent by 0903 GMT and on track for its longest winning streak in terms of weekly gains since last September, while Germany's DAX .GDAXI rose 0.7 percent.

This week banks have been a key focus, with results from Spain’s BBVA (BBVA.MC) and Caixabank (CABK.MC) sending their shares 2 percent and 0.5 percent higher. Both lenders beat profit forecasts thanks to strength in their overseas markets.

However, Britain’s RBS (RBS.L) was a laggard, reversing early gains to trade 2 percent lower after a concerns over a pending fine from the U.S. Department of Justice eclipsed its first-quarter update.

RBS was among the biggest fallers on the European banking index .SX7P, which declined 0.5 percent.

Elsewhere industrials performed well as shares in St Gobain (SGOB.PA) popped 3 percent higher after the French construction materials group confirmed its 2018 financial outlook.

Satellite firm SES (SESFd.PA) was the biggest gainer, up more than 10 percent after beating first-quarter expectations on the back of strong growth in its networks division.

However, Electrolux (ELUXb.ST) fell the most on the STOXX, its shares down 11 percent on a surprise drop in first-quarter core operating profit and a warning on raw material costs.

The earnings season has taken the focus from broader issues such as global trade and geopolitics, which rattled markets in March, while concerns over rising bond yields have also been put on the back burner for now.

So far around a quarter of companies in the MSCI EMU index have given first quarter updates. Nearly 60 percent have either beat or met analyst expectations, according to Thomson Reuters I/B/E/S data. Earnings growth is clocking in at over 15 percent for the quarter, in dollar terms.

Tech stocks also helped fuel gains as the sector .SX8P continued to recover from recent negative sentiment, following well-received results from tech giant Facebook (FB.O), Amazon (AMZN.O), Microsoft (MSFT.O) and U.S. chipmakers.

Euro weakens before ECB; EM currencies wilt as greenback gains

European Stock Markets

The dollar resumed its advance on Wednesday, climbing to the highest in three months as the yield on benchmark U.S. Treasuries extended its move above 3 percent. Stocks declined amid a slew of earnings.

The greenback strengthened against almost every major peer, with the euro among the losers a day before the European Central Bank’s next rate decision. The currency weakness was no tonic for equities, and the Stoxx Europe 600 Index fell along with U.S. futures and the MSCI Asia Pacific Index after less-than-optimistic earnings forecasts Tuesday from bellwethers including Caterpillar Inc.

The sudden upward momentum in the dollar looks set to force a rethink on many of the most popular trades just now. It may spell more turmoil for equity markets, which have been roiled by rising yields and threats to global trade in recent weeks and had been looking to earnings for some cheer. Instead, a mixed bag of results across market-driving tech shares and industrial bellwethers is doing little to calm Wall Street nerves over the fate of global growth.

Wednesday’s moves weren’t entirely risk-off, however, and established safe-haven assets including gold and the yen retreated.

Elsewhere, WTI oil drifted below $68 a barrel while most industrial metals also declined. Emerging-market currencies mostly weakened, led by South Africa’s rand, but Turkey’s lira gained ahead of a key rate decision by the country’s central bank.

Australian markets were shut for a holiday.

The Stoxx Europe 600 Index declined 0.7 percent as of 9:25 a.m. London time on the largest drop in more than a month.
Futures on the S&P 500 Index fell 0.2 percent on its fifth consecutive decline.
The MSCI All-Country World Index dipped 0.3 percent, hitting the lowest in more than two weeks with its fifth consecutive decline.
The U.K.’s FTSE 100 Index declined 0.5 percent, the first retreat in more than a week.
Germany’s DAX Index declined 1 percent on the largest drop in more than a month.
The MSCI Emerging Market Index decreased 0.8 percent to the lowest in almost 11 weeks.
The MSCI Asia Pacific Index fell 0.6 percent to the lowest in almost three weeks.

Currencies

The euro dipped 0.3 percent to $1.2198, the weakest in eight weeks.
The British pound decreased 0.2 percent to $1.3948.
The Japanese yen fell 0.4 percent to 109.23 per dollar, hitting the weakest in 11 weeks with its sixth straight decline.

Bonds

The yield on 10-year Treasuries rose two basis points to 3.02 percent, reaching the highest in more than four years.
Germany’s 10-year yield climbed two basis points to 0.65 percent, the highest in seven weeks.
Britain’s 10-year yield gained three basis points to 1.568 percent, the highest in two months.

Commodities

West Texas Intermediate crude increased 0.3 percent to $67.91 a barrel.
Copper decreased 0.3 percent to $3.16 a pound.
Gold declined 0.4 percent to $1,324.42 an ounce, the weakest in five weeks.

European shares choppy as first-quarter earnings fail to set clear trend

European Stock Markets

European shares had a choppy opening on Tuesday as a batch of first-quarter corporate results failed to set a clear upward trend and chipmakers were weighed down by AMS’ warning of a downturn in orders.

The pan-European STOXX 600 was up 0.2 percent by 0840 GMT after spending some time in negative territory as it moved towards a heavy week of earnings.

Falls in business morale in Germany and Italy had little impact on trading but rising oil prices buoyed shares in the energy sector and offered some support to European indexes.

Consumer staples stocks, which investors have held as proxies to bonds for their stable revenues and income stream, rebounded after a session of losses on Monday when U.S. 10-year treasury yields threatened to cross the 3 percent benchmark and make their returns less attractive.

Austria-based chipmaker and Apple AAPLO supplier AMS (AMS.S) tumbled 13 percent after reporting lower orders from one of its main customers which it did not name, sending shares in other companies in the sector down.
 
“It is reasonable to assume that this will have a negative impact on STM’s Q2 guidance as well”, Liberum analysts said as shares in STMicro (STM.MI) fell 2.3 percent and peer Dialog Semi (DLGS.DE) tumbled 4.1 percent.

These results come as a strong growth in ad sales for Google despite a surge in costs at its parent Alphabet (GOOGL.O) brought some relief to the sector after a ropey few months for leading U.S. tech companies.

Germany’s SAP (SAPG.DE) rose 3.5 percent after saying it was gaining ground on competitors Salesforce (CRM.N) and Oracle (ORCL.N) in the cloud and that its margin recovery was firmly on track.

The banking sector .SX7P, down 0.37 percent, got little support from the results of Santander (SAN.MC), the euro zone’s biggest bank by market value, whose shares fell 2.2 pct after profits in the UK disappointed.

Deutsche Bank AG (DBKGn.DE) however added 1.6 percent. It may spell out strategy changes for its investment bank on Thursday along with first-quarter earnings.

Swiss bank UBS (UBSG.S) had failed to cheer up investors on Monday after its flagship wealth management business missed forecasts.

The automobile sector .SXAP, which has been a clear outperformer since the beginning of the year, edged down 0.5 percent, dragged down by AB Volvo (VOLVb.ST).

The truck maker cautioned that its supply chain was coming under pressure and saw its shares fall about 4 percent.

Results from French tyre maker Michelin (MICP.PA) and automaker PSA Group (PEUP.PA) also disappointed with shares down 1.6 percent and 1 percent respectively.

Dutch paints and coatings maker Akzo Nobel (AKZO.AS) lost 4.5 percent after reporting a larger-than-expected 28 percent drop in first-quarter core profit.

European shares advance as earnings season gathers pace

European Stock Markets

European shares bobbed along on Wednesday, supported by a slew of well received company results as the focus turned from geopolitics to the first-quarter earnings season.

The pan-European STOXX 600 index was up 0.1 percent by 0720 GMT, while the FTSE 100 .FTSE gained 0.3 percent and Germany's DAX .GDAXI ticked 0.1 percent higher. A rise among more cyclical sectors, such as materials, financials and industrials, contributed the most to gains.

Company updates were broadly rewarded with a bounce in shares, as French food group Danone (DANO.PA) rose 2.8 percent after its first-quarter sales beat forecasts on the back of strong demand for baby food in China.

Private healthcare provider Mediclinic (MDCM.L) rose 3.6 percent after a full-year update, while Dutch oil and chemical storage company Vopak (VOPA.AS) gained 4 percent after saying it has the potential to significantly improve earnings in 2019.

The European first-quarter earnings season is expected to deliver moderate earnings growth, especially compared with the United States.

European earnings are expected to increase 1.9 percent from the same quarter in 2017, which would be a rise of 0.8 percent excluding the energy sector, according to Thomson Reuters I/B/E/S data.

Aside from earnings, deal-making was not far from the action after British property company Hammerson (HMSO.L) withdrew its recommendation that shareholders back a merger with smaller rival Intu Properties (INTUP.L).

Shares in Hammerson rose 3.4 percent, while Intu Properties fell nearly 7 percent, the worst-performing stock on the STOXX 600.

European shares steady ahead of new U.S. sanctions on Russia

European Stock Markets

European shares steadied on Monday as investors expected there would be no immediate military escalation in Syria following the weekend’s American-led strike. 

Trading however remained cautious as tensions between Western powers and Russia persisted and markets braced for new U.S. sanctions on Russia over its continued support of Syrian President Bashar-al Assad.

The pan-regional STOXX 600 index was down 0.1 percent by 0832 GMT, while among other European benchmarks, the FTSE .FTSE was down 0.2 and Germany's DAX .GDAXI was flat.

Over the weekend, the United States, France and Britain launched 105 missiles targeting what the Pentagon said were three chemical weapons facilities in Syria in retaliation for a suspected poison gas attack in Douma.

On the corporate front, shares in advertising group WPP (WPP.L) fell as much as 5.3 percent after chief executive and founder Martin Sorrell quit, leaving the group without a boss at a time of huge change in the industry 

WPP shares, which have already fallen 30 percent this year, pared part of their losses and were down 2.1 percent. Analysts and peers have speculated that the group of 200,000 people could be broken up without Sorrell at the helm.

Top STOXX gainer was Whitbread (WTB.L), up 6.2 percent after U.S. activist investor Elliott Management said it now held the largest stake in the coffee-shop and hotel operator.

Software AG (SOWGn.DE) was among the leading fallers, down 4.4 percent. Traders said the fall was due to weaker-than-expected quarterly revenues at its Digital Business Platform business.

As investors awaited the new sanctions on Russia, which a U.S. diplomat said would target companies that were dealing with equipment related to Assad and chemical weapons use, shares in some Russian exposed companies underperformed.

Precious metals miner Polymetal (POLYP.L) fell 4.1 percent, underperforming its peers, miner Evraz (EVRE.L) fell 2.4 percent, while Austrian lender Raiffeisen Bank RIV.VI declined 1.9 percent.

Swiss pumpmaker Sulzer (SUN.S), which was last week freed from U.S. sanctions related to its Russian investor Viktor Vekselberg, slipped 0.3 percent. Over the weekend Sulzer said its business was “fully back to normal” after it received a second licence fully unblocking its assets.

European shares steady after U.S.-led strike on Syria; WPP falls

European Stock Markets

European shares steadied near 4-week highs on Monday as investors expected there would be no immediate escalation in Syria following the weekend’s U.S.-led strike. 

The pan-regional STOXX 600 index was down 0.05 percent by 0715 GMT, while other European benchmarks were also little changed. Euronext said price levels for the CAC and other indexes were not available for technical reasons.

“Saturday’s operation... was a limited one, and intended to be a one-off as President Trump declared ‘mission accomplished’. Many feared the attack would probably lead to a broader confrontation, but the conducted strike was not strong enough to bring Russian retaliation,” said Hussein Sayed, Chief Market Strategist at FXTM.


Caution however dominated as tensions between Western powers and Russia persisted.
On the corporate front, shares in WPP fell 2.3 percent after chief executive and founder Martin Sorrell quit, leaving the group without a boss at a time of huge change in the industry.

Top STOXX gainer was Whitbread, up 6.3 percent after U.S. activist investor Elliott Management said it now held the largest stake in the coffee-shop operator.

Software AG was among the leading fallers, down 4.2 percent. Traders said the fall was due to weaker-than-expected quarterly revenues at its Digital Business Platform business. (Reporting by Danilo Masoni Editing by Robin Pomeroy)

European shares recover further while Sage and Hammerson hammered

European Stock Markets

European shares trod water on Friday, holding near one-month highs at the end of a week laden with geopolitical worries, while results disappointments drove some sharp moves. 

The STOXX 600 was on track for its third straight week of gains, its longest winning streak since January, as investors shrugged off geopolitical concerns to focus instead on a results season expected to support equity markets.

The beginnings of European companies’ first-quarter results were largely positive, though misses were badly punished.

Shares in British software firm Sage sank 19 percent, the biggest decline on the STOXX, after the company cut its full-year revenue guidance as software subscription growth slowed in the first half.

On the other hand, Finnish paper maker Stora Enso jumped 4.5 percent to the top of the index after reporting stronger than expected first-quarter results.

M&A news continued to be a key driver.

Klepierre shares rose 4.3 percent after the commercial real estate firm said it had dropped a bid for Hammerson and would not pursue a takeover of the UK firm.

Hammerson meanwhile dropped 13 percent to trade at 452.7p, erasing nearly all the gains the stock had made from Klepierre’s first takeover bid on March 19.

In earnings reactions, L’Oreal reported a strong sales beat thanks to good performance from China and luxury cosmetics, but the shares wilted after touching a five-month high in early deals, last trading down 0.2 percent.

Traders put the muted reaction down to technical selling and profit-taking.

Overall mining and industrial stocks were the best-performing, enjoying a boost from metals prices which surged higher this week after sanctions on Russian aluminium firm Rusal.

Dissipating trade fears boost European shares further

European Stock Markets

European shares inched up to new one-month highs on Friday as trade tensions showed signs of easing, while results disappointments drove some sharp moves. 

The STOXX 600 rose 0.2 percent while Germany’s DAX, which is highly sensitive to trade and China, gained 0.5 percent after U.S. President Trump made comments indicating he would want to avoid a Sino-U.S. trade war and rejoin the Trans-Pacific Partnership (TPP) trade pact.

“Markets have given cautious welcome to this news. Welcome, because avoiding a trade war is a clear economic positive. Cautious, because market trust in U.S. presidential announcements is, perhaps, a little limited,” said UBS Wealth Management chief economist Paul Donovan.

The index was on track for its third straight week of gains, its longest winning streak since January.
Investors have begun to shrug off geopolitical concerns to focus instead on a results season expected to support equity markets.

The beginnings of European companies’ first-quarter results were largely positive, though misses were badly punished.

Shares in British software firm Sage sank 19 percent, the biggest decline on the STOXX, after the company cut its full-year revenue guidance as software subscription growth slowed in the first half.

On the other hand, Finnish paper maker Stora Enso gained 3.7 percent after reporting stronger than expected first-quarter results.

Cosmetics giant L’Oreal reported a strong sales beat thanks to good performance from China and luxury cosmetics.

“L’Oreal reported a much stronger-than-expected start to the year as first-quarter like-for-like sales growth of +6.8 percent came in well ahead of DB and consensus (forecasts), undoubtedly making L’Oreal best-in-class among its European HPC (and staples) peers,” wrote Deutsche Bank analysts.

But the shares came back after touching a five-month high in early deals, last trading up just 0.5 percent. Traders put the muted reaction down to technical selling and profit-taking.

M&A news continued to be a key driver.

Klepierre shares rose 2.2 percent after the commercial real estate firm said it had dropped a bid for Hammerson and would not pursue a takeover of the UK firm.

“Klepierre throws in the towel,” wrote Stifel analysts, adding they do not see a different potential bidder for Hammerson.

Hammerson’s shares meanwhile dropped 13 percent to trade at 452.7 pence, erasing nearly all the gains the stock had made after Klepierre’s first takeover bid on March 19.

Micro Focus rose 5.4 percent to the top of the STOXX, its second day of strong gains after reports Elliott Management had taken a stake in the firm.

Elsewhere Galapagos rose 4.2 percent after the biotech firm said its Idiopathic Pulmonary Fibrosis drug was moving into phase III trials.

Overall mining and industrial stocks were the best-performing, enjoying a boost from metals prices which surged higher this week after sanctions on Russian aluminum firm Rusal.

European shares pull back on Syria tensions; strong update lifts Tesco

European Stock Markets

European shares fell slightly on Wednesday in a broad-based pullback as escalating tensions in Syria added to market worries, although solid results from Tesco (TSCO.L) and strength among telecoms stocks helped limit losses. 

The pan-European STOXX 600 index fell 0.3 percent by 0815 GMT. This follows gains on Tuesday when the mood was buoyed by a speech from Chinese President Xi Jinping which soothed worries over a possible trade war with the United States.

Russia and the U.S tangled on Tuesday at the United Nations over the use of chemical weapons in Syria as Washington and its allies considered whether to strike at President Bashar al-Assad’s forces over a suspected poison gas attack last weekend.

“Market sentiment has turned sour again... as investors are becoming increasingly concerned about the possibility of a military response by the United States to the suspected chemical weapons attack in Douma (Syria) last weekend,” said UniCredit in a note.

Europe’s air traffic control agency warned airlines to exercise caution in the eastern Mediterranean due to the possible launch of air strikes into Syria in next 72 hours.

In spite of the growing geopolitical worries investors found comfort in some good earning updates and merger and acquisition activity.

Tesco was the top STOXX gainer after the British supermarket beat guidance with a 28 percent rise in full-year profit, helped by a strong end to the year in its home market, underlining the recovery under CEO Dave Lewis.

Its shares rose 5.2 percent.

Jefferies affirmed its buy rating on the stock, highlighting Tesco’s strong outlook. The company, which competes with Sainsbury’s, Walmart’s Asda and Morrisons, said it was firmly on track to deliver its medium-term targets.

Deutsche Telekom (DTEGn.DE) rose 4.1 percent after reports that Sprint (S.N) had restarted talks to merge with the German group’s U.S. unit T-Mobile US Inc (TMUS.O).

Its gains lifted the telecoms index .SXKP up 0.9 percent, making it the biggest sectoral gainer in Europe.

A solid update lifted Swiss chocolate maker Barry Callebaut (BARN.S) by 1 percent, while CHR Hansen (CHRH.CO) fell 5 percent after it missed second-quarter profit forecasts.

Overall, STOXX 600 earnings are expected to rise 3.4 percent in the first quarter on sales up 1.1 percent with growth mainly driven by energy companies, according to Thomson Reuters data. First-quarter earnings for the S&P 500 in the U.S. are seen up 18.5 percent.

European shares led higher by Bayer, luxury stocks

European Stock markets

European shares rose on Tuesday, led higher by gains in Bayer after a report that the U.S. approved its takeover of Monsanto, while a solid update from LVMH lifted luxury sector stocks. 

A speech by Chinese President Xi Jinping calmed investor jitters over an escalating U.S.-China trade row, helping send the pan-European STOXX 600 benchmark up 0.7 percent by 0716 GMT.

Xi promised to cut import tariffs on products including cars, buoying sentiment in the sector and lifting the auto index .SXAP up 2 percent with Daimler (DAIGn.DE) up 2.3 percent.

Bayer (BAYGn.DE) rose 4.3 percent and was among the top gainers after the Wall Street Journal reported that the U.S. Justice Department will allow the German drugs and pesticides group to acquire Monsanto Co (MON.N) in a $62.5 billion (44.22 billion pounds) deal.

LVMH (LVMH.PA) rose 5 percent to record highs after the Louis Vuitton owner posted better-than-expected sales growth in the first quarter, helped by thriving Chinese appetite for luxury goods.

 Its solid update boosted shares in other luxury companies such as Kering (PRTP.PA), up 3.7 percent.

Higher-than-expected quarterly revenues lifted TGS Nopec (TGS.OL) up 11.4 percent to lead gainers on the STOXX.

Among other country benchmarks, the FTSE was up 0.5 percent and the exporter-heavy DAX index surged 1.3 percent.