European stocks spring higher on reviving reflation trade

  • Reuters
  • Stock Market News
European stocks spring higher on reviving reflation trade
Credit: © Reuters.

LONDON, July 25 (Reuters) - Strength among commodity firms and banking stocks as well as a string of solid updates boosted European shares in early deals on Tuesday.

Earnings season remains front and center for equities investors though focus will also be on the two-day U.S. Federal Reserve meeting which gets underway later in the day.

The pan-European STOXX 600 .STOXX index rose 0.3 percent, bolstered by strength in mining firms .SXPP and banks .SX7P while blue chips .STOXX50E gained 0.4 percent.

Germany's DAX .GDAXI rose 0.1 percent, and the commodity-heavy FTSE 100 .FTSE was up 0.5 percent.

Corporate results season gathered steam with British property developer Segro SGRO.L and business media group Informa INF.L leading STOXX risers after well-received first-half updates, both gaining around 4.5 percent.

Europe's tech sector .SX8P was also buoyant after iPhone supplier AMS AMS.S raised its mid-term revenue target, while computer peripherals and mobile speaker maker Logitech LOGN.S also raised its outlook.

Dutch paints maker Akzo Nobel AKZO.AS was one of the biggest individual drags on the STOXX, however, falling 1.3 percent after its second quarter profit missed forecasts. also weighed on paper maker UPM UPM.HE , chemicals firm Croda International CRDA.L , chocolate-maker Lindt & Spruengli LISN.S and Domino's Pizza DOM.L , which all fell between 3 percent to 6.5 percent.

While it is still early days for the European second quarter earnings season as only 20 percent of firms have given updates, more than half of those firms have beaten analysts' expectations, according to Thomson Reuters data.

European deal-making also rolled on with U.S. retailer Michael Kors KORS.N agreeing to buy luxury shoemaker Jimmy Choo CHOO.L for $1.2 billion, sending Jimmy Choo's shares up 16.8 percent to an all-time high.

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