Earnings support European stocks though banks rein in gains

  • Reuters
  • Stock Market News
Earnings support European stocks though banks rein in gains
Credit: © Reuters.

LONDON, Nov 8 (Reuters) - Strong company reports bolstered European shares on Wednesday though banking stocks weighed as doubts around U.S. tax reform plans dented investor sentiment in the sector, and Credit Agricole fell after reporting a fall in profits.

The pan-European STOXX 600 .STOXX steadied by 0830 GMT, recovering from the previous session's fall. Euro zone stocks .STOXXE and blue-chips .STOXX50E rose 0.1 percent.

Banks .SX7P were the weakest sector, down 0.7 percent and following the lead of financials on Wall Street which dipped on skepticism around a much-anticipated Republican plan to cut corporate taxes.

Also weighing was French bank Credit Agricole CAGR.PA , which said weak trading had dented third-quarter profits, sending its shares down 4.6 percent. have turned negative on euro zone bank earnings after upgrading expectations for much of the past year as sentiment improved over a recovering economy, according to Thomson Reuters I/B/E/S data.

Elsewhere strong earnings supported the index.

Dutch supermarket chain Ahold Delhaize AD.AS rose 4.5 percent after profits beat forecasts and it struck an upbeat tone for growth in 2018. gaming company Ubisoft UBIP.PA touched a fresh record high after it beat its second-quarter sales target, boosting its shares up 7.9 percent to lead gainers. drove robust gains from German firms Symrise SY1G.DE , Brenntag BNRGn.DE and Heidelbergcement HEIG.DE as well.

Biggest fallers included Austrian materials firm Wienerberger WBSV.VI and German electronic payment firm Wirecard, down 5.2 to 5.3 percent.

Overall, third-quarter earnings for MSCI Europe are expected to grow 10 percent in dollar terms, according to the latest Thomson Reuters data. This rises to 12.1 percent when looking at euro zone constituents alone.

Slightly fewer companies than average have reported estimate-beating revenues and earnings.

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