Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Positive earnings give European shares a boost but SocGen weighs

Stock MarketsMar 15, 2018 10:16
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The German share price index, DAX board, is seen at the stock exchange in Frankfurt

By Danilo Masoni

MILAN (Reuters) - European shares rose on Thursday, buoyed by good results from companies including insurance heavyweights Munich Re (DE:MUVGn) and Generali (MI:GASI), while Societe Generale (PA:SOGN) fell after its deputy CEO unexpectedly resigned.

SocGen shares slid 2.5 percent after the French bank said Didier Valet was leaving ‍following "a divergence of approaches regarding management of a specific legal matter", without elaborating.

A source familiar with the matter said the divergence related to investigations over the suspected rigging of the Libor interbank rate, although brokers raised concerns over the impact of litigations.

"These uncertainties will put further pressure on the share price, in particular concerns about the triple litigations and the now obvious material disagreements on how to handle them," KBW said. SocGen fell as much as 4.3 percent to their lowest level in more than 2 months.

Gains in the insurance sector (SXIP) and strength among tech stocks >.SX8P>, however, helped push the pan-European STOXX 600 (STOXX) index up 0.3 percent by 0945 GMT.

Munich Re (DE:MUVGn) rose 1.4 percent after the world's largest reinsurer raised its 2018 profit forecasts and said it plans to buy back 1 billion euros in shares.

Generali also rose 1.9 percent after it raised its dividend following record operating profit.

Top gainer on the STOXX was British valve maker Spirax-Sarco Engineering (L:SPX), up 4.5 percent after it reported better-than-expected full-year revenues and profit.

However, Swedish clothing firm H&M (ST:HMb) published lower-than-expected quarterly sales, sending shares in the world's second-biggest fashion retailer down 4.6 percent.

Dufry (S:DUFN) shares fell 7 percent after results with traders attributing the drop to a lack of clarity on its dividend plans.

Banks (SX7P) rose slightly after the European Central Bank released long-delayed guidelines on treating new soured bank debt. The guidelines will go into effect on April 1 but lenders may get a reprieve from full implementation until 2021.

"All looks pretty much in line with expectations with a mild improvement on the schedule of provisioning," Mediobanca Securities said in a note to clients. "We see a mildly net positive for banks today."

Italian banks (FTIT8300), which hold nearly one third of the euro zone bad loan pile, gained 0.3 percent.

Positive earnings give European shares a boost but SocGen weighs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email