UPDATE 2-German shares hit 6-1/2 mth high as SAP surges, broader Europe ticks lower

  • Reuters
  • Stock Market News
UPDATE 2-German shares hit 6-1/2 mth high as SAP surges, broader Europe ticks lower
Credit: © Reuters.

* German shares outperform as SAP, Wirecard surge

* Tech sector surges nearly 4 percent

* Swiss shares touch all-time high

* Oil stocks weigh crude slips

* Auto stocks fall after Nissan cuts profit forecast (Updates to closing)

April 24 (Reuters) - German shares hit their highest in 6-1/2 months on Wednesday, outperforming their European peers as a surge in software firm SAP helped technology post their best days since August 2015, while the broader market ticked lower as a dip in crude prices weighed on oil majors.

German shares .GDAXI rose 0.6 percent, extending their winning streak to the ninth straight session - its longest since February 2015.

SAP SAPG.DE soared 12.6 percent to an all-time high and gained more than 14 billion euros in market capitalization as activist investor Elliott Management disclosed a 1.2 billion euro ($1.35 billion) stake in the company and said it supported a new management efficiency drive.

The company also set ambitious new mid-term targets after reporting a first-quarter loss. performer on the DAX was Wirecard WDIG.DE which climbed 8.5 percent after the payments company confirmed Japan's Softbank Group Corp 9984.T will buy a 5.6 percent stake in the firm. surge sent the tech sector .SX8P soaring 4 percent and post its biggest one-day jump since August 2015.

Meanwhile, the pan-European STOXX 600 index .STOXX ended 0.1 percent lower, breaking an eight session winning run during which it gained 1.5 percent.

After opening lower weighed by signals that China has put broader stimulus on hold, the index briefly gained as strong earnings from Credit Suisse and SAP outweighed. But, it reverted to losses as a dip in oil prices pulled energy stocks lower. O/R

London's FTSE 100 .FTSE fell 0.7 percent as oil majors BP PLC BP.L and Royal Dutch Shell RDSa.L weighed. Along with French peer Total TOTF.PA , they were the biggest drags on the pan-region index and pulled Europe's oil and gas sector .SXEP 1.8 percent lower.

Swiss stocks .SSMI climbing to a record high also helped limit the broader index's losses. Novartis' NOVN.S gained 2.4 percent rise drove gains on the Swiss index as the drugmaker raised its 2019 guidance after a first-quarter earnings and sales beat. in Milan .FTMIB and Madrid .IBEX fell the most in the region, both down more than 0.7 percent, with banks weighing on IBEX.

"The banking sectors is still struggling with a fat yield curve, the level of interest rates and the European Central Bank's overall policy, with our expectations that deposit rates will remain at these levels till 2020," said Stefan Koopman, a Eurozone market economist at Rabobank.

Swiss lender Credit Suisse CSGN.S , kicked off first-quarter balance sheet assessment for banks in the region, posting a surprise profit and saying it was cautiously optimistic about the second-quarter. shares pared most gains to close marginally higher.

Results from Credit Suisse will be followed by UBS Group AG UBSG.S and Barclays BARC.L on Thursday and Deutsche Bank DBKGn.DE on Friday.

German drugmaker Bayer BAYGn.DE slipped a day ahead of first-quarter earnings. A Reuters poll sees underlying core earnings jumping 42 percent for the quarter. gaming company Kindred Group plc KINDsdb.ST lost nearly 9 percent and landed at the bottom of STOXX 600 after profits for the first-quarter were significantly impacted by a new local license in Sweden. stocks .SXAP dropped 0.7 percent, led by Renault RENA.PA after its Japanese partner Nissan Motor Co 7201.T slashed its full-year profit forecast to its lowest in nearly a decade due to weakness in the United States.

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