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European Shares Gain Amid Earnings Deluge

stockmarkets jan23 29jul21 lt

European stocks traded higher Thursday, with dovish comments by Federal Reserve on interest rates and a slew of upbeat earnings updates boosting sentiment.

Following the Fed's slightly hawkish monetary policy announcement, Fed Chair Jerome Powell noted that the U.S. is not at a point where the Fed could start to taper.

The pan European Stoxx 600 rose 0.3 percent to 463.27 after climbing 0.7 percent on Wednesday.

The German DAX inched up 0.2 percent, France's CAC 40 index climbed 0.6 percent and the U.K.'s FTSE 100 was up 0.8 percent.

Royal Dutch Shell rallied 3.5 percent. The oil major raised its dividend and unveiled plans to buy back $2 billion of shares this year after reporting a jump in quarterly earnings.

Anglo American shares soared 5 percent after the miner delivered a record half-year profit.

Spirits maker Diageo advanced 1.2 percent after it reported a better-than-expected rise in full-year organic net sales growth.

ArcelorMittal surged 3.6 percent. The steelmaker boosted its guidance for global steel demand after delivering its best quarter since 2008.

Telecoms equipment maker Nokia soared nearly 8 percent. The company lifted its full-year profit forecast after reporting stronger-than-expected second-quarter operating profit.

Plane maker Airbus jumped 3.6 percent after raising its guidance for profit and aircraft deliveries.

MorphoSys AG advanced 1.5 percent. The biotech company said it regained the momentum in Monjuvi sales and the momentum will likely continue into Q3.

On the flip side, electric utility EDF lost 3.7 percent in Paris after the government suspended an ambitious overhaul plan for the company due to disagreement with the European Commission.

Hotel group Accor declined 2.5 percent after reporting an operating loss for the first half of the year.

Telecom company Orange gave up 3.3 percent as it announced a 3.7 billion-euro ($4.4 billion) impairment on the value of its Spanish activities.

Credit Suisse fell more than 3 percent after the Swiss banking giant posted a 78 percent fall in second-quarter net profit.

Sportswear company Puma shed 3 percent after voicing concerns about the short-term impact of the coronavirus pandemic on its supply chain.

Telecommunications company BT slumped 7.5 percent after its Q1 revenue missed expectations.

Medical technology company Smith & Nephew plunged 8.3 percent despite the company moving back into profit.

In economic releases, the European Commission said earlier today that its economic sentiment indicator, an aggregate measure of business and consumer confidence, rose to 119.0 in July from 117.9 in June.

Elsewhere, Germany's unemployment declined more than expected in July, reports said citing data published by the Federal Labor Agency.

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