UPDATE 2-Rising optimism on trade helps European shares higher as results come in
* STOXX 600 rises 0.1 perce,t
* Sage sinks after revenue guidance cut
* Klepierre exits takeover bid for Hammerson
* Analysts' earnings revisions for STOXX 600 https://tmsnrt.rs/2quBxGq (Updates prices, adds details)
By Helen Reid
LONDON, April 13 (Reuters) - Budding optimism on global trade helped European shares advance on Friday although a turn lower on Wall Street after disappointing earnings cut some of the market's earlier gains.
The STOXX 600 .STOXX held near one-month highs, ending the day up 0.1 percent.
Germany's DAX .GDAXI , highly sensitive to trade and China, gained 0.2 percent after U.S. President Trump made comments indicating he would want to avoid a Sino-U.S. trade war and rejoin the Trans-Pacific Partnership (TPP) trade pact. have given cautious welcome to this news. Welcome, because avoiding a trade war is a clear economic positive. Cautious, because market trust in U.S. presidential announcements is, perhaps, a little limited," said UBS Wealth Management chief economist Paul Donovan.
European shares sealed their third straight week of gains, their longest winning streak since January.
Investors have begun to shrug off geopolitical concerns to focus instead on a results season expected to support equity markets.
Much-anticipated results from JP Morgan JPM.N disappointed, however, sending U.S. stocks lower and weighing on European markets. The bank's shares fell 1.7 percent and hit the S&P 500 banks index. Europe the first trickle of corporate results was largely positive, though misses were badly punished.
Shares in British software firm Sage SGE.L sank 19 percent, the biggest decline on the STOXX, after the company cut its full-year revenue guidance as software subscription growth slowed in the first half. the other hand, Finnish paper maker Stora Enso STERV.HE gained 3.6 percent after reporting stronger than expected first-quarter results. giant L'Oreal OREP.PA reported a strong sales beat thanks to good performance from China and luxury cosmetics. reported a much stronger-than-expected start to the year as first-quarter, like-for-like sales growth of +6.8 percent came in well ahead of DB and consensus (forecasts), undoubtedly making L'Oreal best-in-class among its European HPC (and staples) peers," Deutsche Bank (DE: DBKGn ) analysts wrote in a note.
But the shares came back after touching a five-month high in early deals, and closed just 0.2 percent higher. Traders put the muted reaction down to technical selling and profit-taking.
M&A news continued to be a key driver.
Klepierre LOIM.PA shares rose 3.6 percent after the French commercial real estate firm said it had dropped a bid for Hammerson HMSO.L and would not pursue a takeover of the UK firm. throws in the towel," wrote Stifel analysts, adding that they did not see a different potential bidder for Hammerson.
Hammerson's shares meanwhile dropped 9 percent to trade at 452.7 pence, erasing nearly all the gains the stock had made after Klepierre's first takeover bid on March 19.
Biotech firm Galapagos GLPG.AS rose 4.2 percent after saying its Idiopathic Pulmonary Fibrosis drug was moving into phase III trials. mining and industrial stocks were the best-performing, enjoying a boost from metals prices which surged higher this week after sanctions on Russian aluminium firm Rusal. looked ahead to a flurry of results next week to ground stock prices, as sentiment has turned sour on European equities recently.
Investors pulled $5.2 billion from European equity funds this week, according to Bank of America (NYSE: BAC ) Merrill Lynch, the biggest outflows since July 2016.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ STOXX 600 earnings revisions
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or