🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

UPDATE 2-Earnings lifts European shares, German DAX outperforms

Published 26-01-2021, 03:15 pm

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* UBS gains after profit surge

* IMF lifts global growth forecast for 2021

* Unicredit up on talks of CEO change (Updates to market close)

By Sruthi Shankar

Jan 26 (Reuters) - European stocks rose on Tuesday as strong earnings from wealth manager UBS and auto parts maker Autoliv added to a string of upbeat corporate updates, while the International Monetary Fund raised its forecast for global growth in 2021.

The pan-European STOXX 600 index .STOXX closed up 0.6%, with a rally in automakers, industrial companies and SAP SAPG.DE and helping the German DAX .GDAXI outperform.

UBS UBSG.S rose 2.4% as high levels of client activity helped the world's largest wealth manager record a 137% rise in net profit. broader financial services index .SXFP gained 1.8%, with Swedish buyout group EQT EQTAB.ST jumping 14.6% after it signed a deal to buy global real estate investment manager Exeter Property Group for $1.87 billion. STOXX 600 tumbled to a two-week low on Monday after data painted a gloomy picture of Europe's economy in January as many countries tighten curbs to combat new variants of the coronavirus.

"The numbers that are coming out show economic activity in Europe is falling back and underperforming other parts of the world," said David Miller, investment director at Quilter Cheviot.

"So far, investors are prepared to look through the current difficulties on the basis that second half will be better."

Supporting the sentiment, the International Monetary Fund raised its forecast for global economic growth in 2021 and said the coronavirus-triggered downturn in 2020 would be nearly a full percentage point less severe than expected. FTSE MIB .FTMIB rose 1.2% after Prime Minister Giuseppe Conte handed in his resignation to the head of state, hoping he would be given an opportunity to put together a new coalition and rebuild his parliamentary majority. lost his absolute majority in the upper house Senate last week when a junior partner, the Italia Viva party quit in a row over the various issues.

Boosting Milan's bourse, UniCredit CRDI.MI jumped 4.5% after reports it set to appoint Andrea Orcel, one of Europe's best known investment bankers, as its new chief executive. Autoliv ALIVsdb.ST gained 5.3% after it reported higher than expected quarterly earnings, boosted by a recovery in car production. gas producer Linde LINI.DE rose 3.5% after announcing an increase to its quarterly dividend and a $5-billion share buyback programme. pharmaceutical company PharmaMar PHMR.MC surged 21.1% after peer review journal Science published a paper that confirmed its drug plitidepsin has a "potent preclinical efficacy" against the COVID-19.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.