LONDON: European stock markets rose Thursday on company updates and as investors assessed the US Federal Reserve's outlook for the economy.
London's benchmark FTSE 100 index gained 0.76 percent to stand at 6,681.61 points in mid-afternoon deals in the British capital.
Frankfurt's DAX 30 advanced 0.08 percent to 11,220.98 points and the CAC 40 in Paris was up 0.07 percent to 5,021.07 points compared with Wednesday's close.
The euro fell to $1.0938 from $1.0990 late in New York on Wednesday, as Germany's jobless scrolls showed a surprise increase of 9,000 people in July.
The unemployment rate stayed at 6.4 percent in July, however, the lowest level since reunification almost a quarter century ago.
Asian stock markets mostly closed higher Thursday, tracking a rally in New York, while the dollar advanced after the Federal Reserve upgraded its outlook on the US economy, traders said.
"With no surprises from the Federal Reserve, individual stock performance will be the key driver in the short term as the reporting season continues," said Andy McLevey, head of dealing at stockbroker Interactive Investor.
The Fed on Wednesday said the US economy had expanded "moderately" in recent months and the jobs market strengthened, though it noted continued "soft" business investment and exports.
It also said inflation was below target, but put much of that down to falling energy prices and cheaper imports caused by the strong dollar.
While it gave no more clues about its plans for raising interest rates, analysts said the wording suggested September was now a strong possibility for a rate rise.
On Thursday Wall Street stocks opened lower on mixed earnings and government data that showed the US economic rebound in the second quarter was slightly lower than expected.
Five minutes into trade, the Dow Jones Industrial Average lost 0.22 percent to 17,712.21 points.
The broad-based S&P 500 dipped 0.26 percent to 2,103.18, while the tech-rich Nasdaq Composite Index fell 0.26 percent to 5,098.36.
On the European corporate front, the energy sector was in focus as Royal Dutch Shell said it plans to reduce its headcount by 6,500 this year owing to sliding oil prices and as it looks to complete a mega-takeover.
With crude oil futures down by about a half in value since a year ago, Britain's biggest domestic energy provider Centrica said it too would reduce its workforce -- by a net 4,000 positions alongside a cost-cutting programme through to 2020.
Shell earlier this year unveiled a mega-takeover of British rival BG Group worth £47 billion ($73 billion, 67 billion euros), as the two firms consolidate their positions in a sector slammed by the oil price slump.
In mid-afternoon trading, Shell 'B' shares advanced 4.64 percent to stand at 1,859.50 pence, BG Group won 4.81 percent to 1,090 pence, while Centrica lost 2.83 percent to 267.40 pence.
Meanwhile German airline Lufthansa, still reeling from the crash of one of its low-cost Germanwings planes in March over the French Alps, said it tripled net profit in the second quarter, helped by cheap fuel. Its shares slumped 2.76 percent to 12.31 euros.
French auto group Renault said its first half profits had doubled to 1.4 billion euros ($1.54 billion) compared with the same period in 2014 as the European market showed a stronger than expected recovery.
But its shares crashed 8.04 percent to 83.09 euros with the results outcome expected and traders preferring to cash in on recent gains.
Europe's biggest bank by capitalisation, Santander of Spain, said its quarterly profits lost 17.2 percent to 1.7 billion euros due to a weak euro and on growth in Britain. Its shares were down 2.66 percent at 6.325 euros.
Comments
Comments are closed for this article.