European shares rose for the fourth straight session and hit a two-week closing high on Tuesday, boosted by corporate results in both the United States and Europe, including those of Swiss bank UBS. The FTSEurofirst 300 index of top European shares rose 0.3 percent to 1,145.96 points, the highest close since April 11. Volumes were low, at 81 percent of the 90-day average, as markets resumed following the Easter holiday.
UBS rose 3.9 percent, with money pouring into its core wealth management arm in the first quarter and its struggling investment bank doing better than expected. Swiss banks Julius Baer and Credit Suisse rose 2.1 and 1.2 percent respectively. Credit Suisse reports results on Wednesday. "Expectations for earnings season had been low, partly because of margin pressure, but on the whole they've been better though mainly in the US rather than Europe, which has been hitching a ride on the back of it," said Michael McNaught-Davis, head of international equities at Scottish Widows, which has 145 billion pounds under management.
Anglo American fell 1 percent. McNaught-Davis said the expectations that "rate hikes are being pushed back is partly a reflection that the economy is not strengthening." He added that the "ideal scenario" for equities would be for the economy to pick up more, and for rate hikes to be gradual.
BP rose 0.8 percent, ahead of results on Wednesday. Royal Dutch Shell rose 1.2 percent. Among other stocks, Italian dairy group Parmalat rose 10.7 percent after French rival Lactalis launched a $4.9 billion take-over bid for it. Around Europe, UK's FTSE 100 index rose 0.9 percent, Germany's DAX index was up 0.8 percent, and France's CAC 40 gained 0.6 percent.
Comments
Comments are closed for this article.