🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Earnings and dovish ECB lift European shares to five month high

Published 27/10/2017, 08:35
© Reuters. The German share price index, DAX board, is seen at the stock exchange in Frankfurt
STOXX50
-
MSFT
-
NWG
-
GOOGL
-
AMZN
-
ETL
-
GTO
-
STOXX
-
GOOG
-
SX8P
-
UBSG
-

MILAN (Reuters) - European shares rose to their highest in nearly five months on Friday boosted by solid results from companies including Swiss bank UBS as investors cheered for a second day prospects that the ECB would remain accommodative for longer.

While the pan-European STOXX 600 (STOXX) index added 0.4 percent by 0726 GMT, set for a weekly gain of around 0.8 percent after a fall in the previous week, euro zone blue chips (STOXX50E) were set for their ninth straight week of gains.

The ECB took a step towards weaning the euro zone off loose money on Thursday but promised years of stimulus and even left the door open to backtracking.

On Friday, UBS (S:UBSG) rose 2 percent after the world's biggest private bank posted a 14 percent jump in third-quarter net profit but kept a cautious outlook for the rest of 2017 due to political and monetary policy uncertainty.

Royal Bank of Scotland (L:RBS) added 2.7 percent after the UK bank posted a better than expected quarterly profit.

Tech stocks (SX8P) were strong, up 0.7 percent, following upbeat earnings from U.S. giants Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN).com. In the sector, digital security company Gemalto (AS:GTO), which has issued four profit warnings in the last year, rallied 11 percent as results reassured.

Top loser on the STOXX was Eutelsat (PA:ETL) after the satellite firm reported lower revenues.

© Reuters. The German share price index, DAX board, is seen at the stock exchange in Frankfurt

According to Thomson Reuters data 34 percent of MSCI Europe companies have reported results so far, with earnings beats at 54 percent and misses at 36 percent. Revenue beats were 52 percent and misses 48 percent.

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.