European shares rose on Wednesday, boosted by solid corporate earnings, although fund managers said short-term index moves would prove volatile until the eurozone peripheral debt situation is resolved. The pan-European FTSEurofirst 300 index of top shares closed up 0.3 percent at 1,153.41 points, paring earlier gains after Wall Street opened lower on weaker results.
Volume was 84.2 percent of its 90-day average. In the background, speculation remained Greece may need to restructure its debt, with traders worried this could hit banking stocks and mean further potential losses for private bondholders. Strong earnings news was the main support for the market. Buyers came in for French luxury goods group Hermes, which rose 3.3 percent after first-quarter sales beat forecasts, with volume more than triple its 90-day average.
The STOXX Europe 600 Personal and Household Goods index rose 1.2 percent on the back of read-across from Hermes results as well as positive Credit Suisse broker note on the sector. Looking at the reporting season overall, French companies have been leading the way in first-quarter results.
This compares with only 61 percent of companies on the German DAX beating or meeting forecasts, of the 79 percent which have reported first-quarter earnings, while only half of the FTSE (of the 82 percent that have reported) have beat or met forecasts. The French CAC 40 was up 0.1 percent, outperforming the FTSE 100 index which was down 0.7 percent and Germany's DAX, 0.1 percent lower. Elsewhere, Danish shipping and oil group A.P. Moller-Maersk rise 4.4 percent after first-quarter net profit topped expectations. On the downside, HSBC fell 1.5 percent after it unveiled a strategic review to cut $3.5 billion in costs.
Comments
Comments are closed for this article.