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

European shares make modest gains, masking big moves from Adidas, EDF

Published 08/03/2017, 10:17
© Reuters. Traders work at their desks in front of the German share price index DAX board in Frankfurt
ADSGN
-
EDF
-
ISA
-
GFSl
-
BOSN
-
NKE
-
STOXX
-
DOKA
-
SX6P
-
SXEP
-
SXDP
-

By Helen Reid

LONDON (Reuters) - European shares edged up on Wednesday in early deals, with significant results-driven gains from German sportswear company Adidas and British security company G4S (CO:G4S) offset by losses from EDF and Boskalis.

The pan-European STOXX 600 (STOXX) index was up 0.2 percent by 0951 GMT.

As earnings season builds momentum, figures show 54.9 percent of European companies have so beaten estimates, significantly more than the quarterly average since 2011.

Adidas (DE:ADSGn) shares hit a record high, up 6.5 percent and among the top STOXX gainers, after it increased sales and profit growth targets, having posted a 12.5 percent increase in 2016 sales.

The German sportswear company's shares have gained 65 percent over the past year while U.S. competitor Nike (NYSE:NKE) has dropped 3 percent.

British security company G4S (L:GFS) was another top gainer, up 6.7 percent and at a 20-month high after it posted its first rise in revenue in four years and reported a cut in leverage.

British satellite company Inmarsat (L:ISA) rose 6.2 percent after a 9.5 percent rise in earnings. Investors shrugged off the firm's cautious outlook for the next two years.

Inmarsat had seen shorting of its stock increase ahead of earnings, Markit figures showed.

French state-owned utility EDF (PA:EDF) hit an all-time low in early trading, then pared back losses to trade down 6.8 percent, after the French government sold 231.1 million preferential shares in the firm as part of a capital hike.

The stock was already through 3 1/2 days' worth of 30-day average volume after two hours of trading.

EDF dragged the utilities sector index (SX6P) lower. Utilities have shown the lowest earnings growth rate of any sector this season, with growth down 14.9 percent, I/B/E/S data showed.

Dutch marine construction company Boskalis (AS:BOSN) was down 6.8 percent, set for its biggest one-day loss in a year after it reported its first yearly loss in two decades on one-off charges.

Swiss security company Dormakaba (S:DOKA) was down 4.8 percent, a top faller and set for its worst day in six months, after results. Vontobel analysts said despite solid first-half results, consensus expectations were not likely to increase in the face of rising negative FX effects.

Oil companies were the top sectoral fallers (SXEP), tracking global crude prices lower.

© Reuters. Traders work at their desks in front of the German share price index DAX board in Frankfurt

The European healthcare index (SXDP) was down 0.3 percent, set for its fourth day of losses. Healthcare stocks dropped 1 percent on Tuesday after U.S. President Donald Trump said he was working on a "new system" to lower pricing in the drug industry.

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.