European stocks rise on Safran, Rolls-Royce boost amidst earnings flurry
The French aerospace group Safran <SAF.PA, opens new tab rose 4.8% after raising its full year profit outlook, while British aero-engineer Rolls-Royce RR.L, opens new tab rallied 8.4% after raising, opens new tabits full-year outlook for operating profit and free cash flow. Shares of both firms hit all-time highs, respectively.
The pan-European Stoxx 600 index (.STOXX), opens new tab was up 0.4% by 0810 GMT with all major regional indexes in the green. The STOXX 600 index is on track to end the month 2% higher as easing trade worries, better-than-expected U.S. and European economic data and largely upbeat earnings reports bolstered sentiment.
"What's driving the equities markets is that we are at the peak of the earnings season," said Christoph Berger, CIO European equity at Allianz Global Investors.
"The perspective of most European market participants is now more on 2026 and that will be the time when you see the impact of the fiscal stimulus in Germany but also more measures related to European sovereignty."
Ahead of the August 1 deadline, U.S. President Donald Trump released fresh levies ranging from updates on copper tariffs, goods from Brazil, South Korea and India as well as an end to exemptions for small-value overseas shipments.
After Trump stuck a trade deal framework with the EU over the weekend, analysts' outlook for second-quarter earnings has improved. As of Tuesday, STOXX 600 companies are likely to report growth of 1.8% in second-quarter earnings, a large improvement from the 0.3% fall analysts had expected a week ago, according to LSEG I/B/E/S data.
Euro zone banks (.SX7E), opens new tab continued their upward momentum, adding 1.8%, boosted by Societe Generale (SOGN.PA), opens new tab raising its annual profit target on Thursday. The French bank was among top gainers on the index, advancing 6.8%.
Standard Chartered (STAN.L), opens new tab reported a higher-than-expected rise in first-half pretax profit, while Spanish bank BBVA (BBVA.MC), opens new tab added 7.6% after second-quarter net profit beat expectations.
Energy giant Shell (SHEL.L), opens new tab gained 2.3% after the company beat profit expectations for the quarter and kept buybacks steady. Rival BP (BP.L), opens new tab rose marginally.
Anheuser-Busch InBev (ABI.BR), opens new tab slumped 9.4% to the bottom of the index after the beer giant reported a fall in volumes, dragged back by weak sales in China and Brazil.
Blowout results from Microsoft (MSFT.O), opens new tab and Meta Platforms (META.O), opens new tab overnight are set to power Wall Street on Thursday, ahead of reports from Apple (AAPL.O), opens new tab and Amazon.com (AMZN.O), opens new tab.
Investors will also wait for Eurozone unemployment data for June and preliminary CPI data from France and Germany expected later in the day.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
31 minutes ago
- Daily Mail
Lime bikes to be banned in London borough - with rival companies handed rental e-bike firm's contract
A west London borough is set to ban Lime bikes following complaints of 'anti-social' parking on pavements and hand over contracts to a rival e-bike rental firm instead Hounslow Council terminated its two-year agreement with Lime due to riders blocking pavements and the high price. It comes as a victory to competing e-bike companies Forest and Voi who have both been given contracts to set up their bikes in the borough instead. Lime have the monopoly on e-bikes across London, owning most of the estimated 30,000 in the city. Companies submitted their bids for the highly-desirable contracts during a competitive procurement process. A council spokesperson said the decision was 'shaped by widespread community feedback' which found residents wanted 'stronger parking compliance, faster response times to resident concerns, and more tailored and affordable pricing'. A spokesperson for Lime told The Telegraph: 'Despite acknowledging the quality of our service was higher in our bid, Hounslow council selected another provider because it offered them more money. 'This is a really disappointing outcome for the thousands of Hounslow residents that rely on our bikes daily to connect to other areas of London.' The City of London seized more than 100 e-bikes in February amid a clampdown on pavement parking and dangerously dumped e-bikes. James Bolton, Voi's UK general manager, said: 'We're delighted to win this contract and extend our London e-bike pilot to Hounslow. 'We will work responsibly and closely with the council to ensure our scheme works for everyone in the borough, stretching from Bedfont Lakes Country Park in the west to Chiswick House Gardens in the east. A Forest spokesperson said: 'The Hounslow tender was a highly competitive process and we're delighted our bid stood out.' Lime bikes have become a nuisance for people who find them stacked up outside their homes, blocking walkways or abandoned in the road. Charities including the Sight Loss Council and the National Federation of the Blind of the UK have repeatedly warned councils about the bikes posing a trip hazard or unnecessary obstacles for blind people. Last month actor Robert Powell, 81, revealed he 'sent 570 photographs' to Camden Council showing the bikes taking over his doorstep. The Bafta-nominated actor urged the council to take action, saying that he and his wife, Barbara Lord, once counted at least 100 bikes in a parking bay in front of their Highgate home. 'You've got two octogenarians here who are in danger of being killed,' Powell said. 'The entire pavement has been blocked by bikes. Camden say they prioritise safety and safer travel, so do they know that allowing bikes on pavements is not safe for anyone? 'Last year we called the police about the bikes, they just laughed.' Riders can rent e-bikes on the street in London by picking them up with a mobile phone app, but they are often not required to put them in a designated area after use. This has led to them blocking pavements across the capital - with councils receiving thousands of complaints and some even threatening to ban hire firms altogether. Mr Powell admitted that he was 'terrified' of having a heart attack due to having to move 10 to 12 heavy bikes from the area each day. He said his GP has even written a letter to the council explaining how stressful the situation is for him and his wife. The spot is particularly busy as it is close to Hampstead Heath, the actor told the Camden New Journal. Camden Council responded by saying it is working to relocate the bay and has marked out a new bay further up the road. Last December, new powers to crack down on the scourge of e-bikes and e-scooters being dumped on pavements were hailed as the 'beginning of the end for the Wild West model'. Enforcement has however, become increasingly complex, although the new powers mean Mayor Sadiq Khan will able to fine users and operators who dump their devices in dangerous locations. It comes after Transport for London (TfL) warned rental e-bike operators could be fined as part of measures to tackle 'significant safety issues' around poor parking. In September, Brent Council threatened that Lime would have to remove its e-bikes from the borough by October 31 for allegedly ignoring its safety concerns amid 'havoc' caused by the cycles. But the council agreed to allow Lime to continue operating after the company addressed these concerns. In Hammersmith and Fulham, more than 100 e-bikes were seized by the council in August last year after complaints from residents that they were blocking roads and pavements. TfL revealed last November that rental e-bike operators could be fined as part of measures to fight back against poor parking in London. It published a new 'enforcement policy' in response to widespread concerns about e-bikes blocking pavements and said it will take action over dockless e-bikes being left on its red route road network outside designated places, and on its land such as station forecourts and bus garages. This brings e-bike regulations closer into line with those for rental e-scooters, which are already required to be parked in bays. It added that responses may include warning letters, fixed penalty notices (FPNs) to operators, prosecutions and removal of vehicles. FPNs would be £100 each, reduced to £50 if paid within 14 days.
Reuters
31 minutes ago
- Reuters
Japan trade negotiator to visit US to press for swift implementation of auto tariff deal
TOKYO, Aug 5 (Reuters) - Japan's top tariff negotiator Ryosei Akazawa said he planned to visit Washington from Tuesday to press the United States to have President Donald Trump sign an executive order to bring an agreed 15% tariff rate on automobiles into effect. The U.S. last month agreed in a trade deal with Japan to lower existing tariffs on Japanese automobile imports to 15% from levies totaling 27.5% previously. Duties that were due to come into effect on other Japanese goods will also be cut to 15% from 25%. "We will push the United States to make sure that an executive order be signed on the agreed tariff on automobiles and automotive components as soon as possible," Akazawa told parliament. Referring to the problem of "stacking" where goods can be affected by multiple tariffs, Akazawa also said Japan wants to make sure that goods that are already levied at more than 15% would be exempt from the additional 15% rate.
Reuters
31 minutes ago
- Reuters
Dollar weakens as rate cut odds rise, tariff uncertainties linger
SINGAPORE, Aug 5 (Reuters) - The U.S. dollar wavered on Tuesday as the rising odds of Federal Reserve rate cuts weighed on sentiment, while investors assessed the broader economic impact of U.S. tariffs unleashed last week. The dollar remained under pressure following Friday's U.S. jobs report that showed cracks in the labour market, prompting traders to swiftly price in rate cuts next month. U.S. President Donald Trump's firing of a top statistics official and the resignation of Federal Reserve Governor Adriana Kugler also exacerbated market unease, leading to a sharp dive in the dollar on Friday. The U.S. currency found its footing on Monday but was weaker in early trading on Tuesday. The euro last bought $1.1579 while sterling stood at $1.3298. The dollar index , which measures the U.S. currency against six other units, was at 98.688 after touching a one-week low earlier in the session. Traders are now pricing in a 94.4% chance of the Fed cutting rates in its next meeting in September, compared to 63% a week earlier, CME FedWatch tool showed. Goldman Sachs expects the Fed to deliver three consecutive 25 basis point cuts starting in September, with a 50 basis point move possible if the unemployment rate climbs further in the next report. San Francisco Federal Reserve Bank President Mary Daly said on Monday that given mounting evidence that the U.S. jobs market is softening and no signs of persistent tariff-driven inflation, the time is nearing for rate cuts. "I was willing to wait another cycle, but I can't wait forever," Daly said. Meanwhile, the focus remains on tariff uncertainties after the latest duties imposed on scores of countries last week by Trump, stoked worries about the health of the global economy. The Japanese yen firmed slightly to 146.95 per dollar after minutes of its June policy meeting showed a few Bank of Japan board members said the central bank would consider resuming interest rate increases if trade frictions de-escalate. The Swiss franc was steady at 0.8081 per dollar after dropping 0.5% in the previous session as Switzerland geared up to make a "more attractive offer" in trade talks with Washington to avert a 39% U.S. import tariff on Swiss goods that threatens to hammer its export-driven economy. The long-term impact of the tariffs though remains uncertain, with traders bracing for volatility. "This is going to be like the pandemic, we all expect to see the transitory impact on supply chains to happen very quickly," said Rodrigo Catril, currency strategist at National Australia Bank in Sydney. "It'll probably take six months to a year to see exactly where we land and who's going to be winners and losers from all this." In other currencies, the Australian dollar was 0.11% higher at $0.64736, while the New Zealand dollar rose 0.11% to $0.5914. "We're still of a view that the big dollar is heading down," Catril said, referring to the U.S. dollar. "While global growth means pro-growth currencies like Asian currencies and the AUD should struggle, we've other structural dynamics in the USD, where policies are dollar-negative."
