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Miners help European shares edge up, staying near two-and-a-half year high

Published 19/01/2018, 09:15
© Reuters. The German share price index, DAX board, is seen at the stock exchange in Frankfurt
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By Danilo Masoni

MILAN (Reuters) - European shares edged up on Friday as gains among miners following strong economic data from top metals consumer China helped offset a pullback in energy firms as crude prices fell.

The pan-regional STOXX 600 (STOXX) benchmark was up 0.2 percent by 0856 GMT, on track to end the week near a 2-1/2 year peak as confidence over economic and earnings growth helped consolidate a strong start to the year.

The basic resources index (SXPP), where big mining stocks are listed, rose 1 percent, leading sectoral gainers in Europe, as metals prices were buoyed by the first acceleration in China's economic growth in seven years.

Shares in BHP Billiton (L:BLT), Rio Tinto (L:RIO) and Glencore (L:GLEN) were all up between 0.5 and 1.2 percent.

Among outstanding movers were shares in OC Oerlikon (S:OERL), up 4.2 percent, after the Swiss-listed textile-and-surfacing solutions group forecast rising textile margins following two big Chinese orders.

"These contracts point to a stronger and more sustainable recovery of the investment cycle in the manmade/polyester industry especially in the key manmade market in China," Baader Helvea said in a note, affirming its buy rating.

Software AG (DE:SOWGn) rose 2 percent to its highest level in 18 years, supported by the prospect of a rise in 2018 earnings as a result of tax reforms in the United States.

Energy stocks (SXEP) were the biggest fallers, down 0.6 percent, tracking a fall of more than 1 percent in crude prices.

Among British mid-caps, a profit warning sent crematorium operator Dignity (L:DTY) down 53 percent.

Britain's biggest floor coverings retailer Carpetright (L:CPRC) also warned on profits, sending its shares plummeting 44 percent and weighing on home improvement retailer Kingfisher (L:KGF), down 2.9 percent.

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

Elsewhere among top losers, Air France (PA:AIRF) fell 2.2 percent after a downgrade from Morgan Stanley (NYSE:MS), while Ferrovial (MC:FER) declined 2 percent after a downgrade from Deutsche Bank (DE:DBKGn).

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