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Business Times
3 days ago
- Business
- Business Times
Europe: Shares post biggest weekly gain in 12 powered by financials
[BENGALURU] European shares posted their biggest weekly gain in 12 weeks on Friday (Aug 8), as banking stocks continued to drive the benchmark index upwards, while investors watched for signs of a potential Russia-Ukraine ceasefire. The pan-European Stoxx 600 index rose 0.2 per cent on the day, taking its weekly gains to 2.2 per cent. The eurozone banking index rose 1.9 per cent on Friday, making it the top performing sector year-to-date with a 56.8 per cent gain. Banking stocks have benefited from investors seeking shelter in domestically focused equities due to uncertainty surrounding US tariff policies, while analysts have also highlighted strong performance during the earnings season. 'Financials are once more the key differentiator, with strong results across the board, accounting for three-quarters of the upside surprise,' strategists at BofA Global Research said. 'Given financials' outsized share in index earnings, better-than-expected quarterly earnings for the sector has helped to lift consensus estimates for the market overall by 5 per cent since mid-July.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Globally, investors monitored geopolitical developments after Bloomberg News reported that the US and Russia are aiming to reach a deal to halt the war in Ukraine that would lock in Moscow's occupation of territory seized during its invasion. Defence stocks fell 0.8 per cent on the day, leaving annual gains at 51.4 per cent, just below the banking sector. Shares of German reinsurer Munich Re fell 7.2 per cent and ranked among the top decliners on the benchmark index after it trimmed its fiscal-year outlook for insurance revenue. Insurance stocks declined 1.6 per cent, a day after hitting a record high. Shareholders in Germany's Thyssenkrupp are set to vote on a spin-off of its defence division, sending its shares up 2.7 per cent, with European spending on defence raising expectations for the company's value. Of the 198 companies in the Stoxx 600 that reported earnings through Tuesday, 53 per cent exceeded analysts' estimates, according to data compiled by LSEG. Global markets also tried to gauge the outlook for US monetary policy. Rate cut expectations strengthened after US President Donald Trump announced Stephen Miran's nomination to the Federal Reserve Board, likely bringing dovish policy views to the table. Strong corporate results and increasing confidence in Fed rate cuts have helped European stocks rebound from the five-week lows reached last Friday. Lotus Bakeries' shares added 10.9 per cent after the Biscoff brand owner reported strong first-half results, its best daily performance in over a year. German IT service provider Bechtle's shares jumped 11 per cent, the strongest performer on the benchmark index, after the company confirmed its full-year guidance. Novo Nordisk extended gains made the previous day after rival Eli Lilly's weight-loss pill's late-stage study showed that it lagged Novo's injectable obesity treatment Wegovy. REUTERS
Business Recorder
3 days ago
- Business
- Business Recorder
European shares post biggest weekly gain in 12 weeks
FRANKFURT: European shares posted their biggest weekly gain in twelve weeks on Friday, as banking stocks continued to drive the benchmark index upwards, while investors watched for signs of a potential Russia-Ukraine ceasefire. The pan-European STOXX 600 index rose 0.2 percent on the day, taking its weekly gains to 2.2 percent. The euro zone banking index rose 1.9 percent on Friday, making it the top performing sector year-to-date with a 56.8 percent gain. Banking stocks have benefited from investors seeking shelter in domestically-focused equities due to uncertainty surrounding US tariff policies, while analysts have also highlighted strong performance during the earnings season. 'Financials are once more the key differentiator, with strong results across the board, accounting for three quarters of the upside surprise,' strategists at BofA Global Research said. 'Given financials' outsized share in index earnings, better-than-expected quarterly earnings for the sector has helped to lift consensus estimates for the market overall by 5 percent since mid-July.' Globally, investors monitored geopolitical developments after Bloomberg News reported that the United States and Russia are aiming to reach a deal to halt the war in Ukraine that would lock in Moscow's occupation of territory seized during its invasion. Defence stocks fell 0.8 percent on the day, leaving annual gains at 51.4 percent, just below the banking sector. Shares of German reinsurer Munich Re fell 7.2 percent and ranked among the top decliners on the benchmark index after it trimmed its fiscal-year outlook for insurance revenue.
Reuters
3 days ago
- Business
- Reuters
European shares post biggest weekly gain in 12 powered by financials
Aug 8 (Reuters) - European shares posted their biggest weekly gain in twelve weeks on Friday, as banking stocks continued to drive the benchmark index upwards, while investors watched for signs of a potential Russia-Ukraine ceasefire. The pan-European STOXX 600 index (.STOXX), opens new tab rose 0.2% on the day, taking its weekly gains to 2.2%. The euro zone banking index (.SX7E), opens new tab rose 1.9% on Friday, making it the top performing sector year-to-date with a 56.8% gain. Banking stocks have benefited from investors seeking shelter in domestically-focused equities due to uncertainty surrounding U.S. tariff policies, while analysts have also highlighted strong performance during the earnings season. "Financials are once more the key differentiator, with strong results across the board, accounting for three quarters of the upside surprise," strategists at BofA Global Research said. "Given financials' outsized share in index earnings, better-than-expected quarterly earnings for the sector has helped to lift consensus estimates for the market overall by 5% since mid-July." Globally, investors monitored geopolitical developments after Bloomberg News reported that the United States and Russia are aiming to reach a deal to halt the war in Ukraine that would lock in Moscow's occupation of territory seized during its invasion. Defence stocks (.SXPARO), opens new tab fell 0.8% on the day, leaving annual gains at 51.4%, just below the banking sector. Shares of German reinsurer Munich Re ( opens new tab fell 7.2% and ranked among the top decliners on the benchmark index after it trimmed its fiscal-year outlook for insurance revenue. Insurance stocks (.SXIP), opens new tab declined 1.6%, a day after hitting a record high. Shareholders in Germany's Thyssenkrupp ( opens new tab are set to vote on a spin-off of its defence division, sending its shares up 2.7%, with European spending on defence raising expectations for the company's value. Of the 198 companies in the STOXX 600 that reported earnings through Tuesday, 53% exceeded analysts' estimates, according to data compiled by LSEG. Global markets also tried to gauge the outlook for U.S. monetary policy. Rate cut expectations strengthened after President Donald Trump announced Stephen Miran's nomination to the Federal Reserve Board, likely bringing dovish policy views to the table. Strong corporate results and increasing confidence in Fed rate cuts have helped European stocks rebound from the five-week lows reached last Friday. Lotus Bakeries' ( opens new tab shares added 10.9% after the Biscoff brand owner reported strong first-half results, its best daily performance in over a year. German IT service provider Bechtle's ( opens new tab shares jumped 11%, the strongest performer on the benchmark index, after the company confirmed its full-year guidance. Novo Nordisk ( opens new tab extended gains made the previous day after rival Eli Lilly's (LLY.N), opens new tab weight-loss pill's late-stage study showed that it lagged Novo's injectable obesity treatment Wegovy.
Zawya
6 days ago
- Business
- Zawya
HSBC lifts S&P 500 year-end target to 6,400 on AI boom, easing policy uncertainty
HSBC on Tuesday raised its year-end S&P 500 index target by more than 800 points to 6,400, citing euphoria around artificial intelligence and easing U.S. policy uncertainty. The upgrade comes after similar moves from other brokerages, including Goldman Sachs and BofA Global Research, last month. "The AI trade is powering the tech/AI cohort higher (roughly half of the S&P 500), while reduced policy uncertainty (namely tariffs) is fueling the 'rest' of the market," HSBC strategists wrote in a note. The S&P 500 has rebounded 30.8% since its April 8 low, following U.S. President Donald Trump's 'Liberation Day' tariffs. The index notched fresh highs in July, driven by upbeat earnings from tech giants Microsoft and Meta Platforms , which renewed investor optimism around AI. HSBC's new target represents a marginal 1.1% upside to the index's last close at 6,329.94. Its previous target was 5,600 for the index. The brokerage expects slower growth in the U.S. in the second half of the year, allowing the Federal Reserve to reduce interest rates, and sees the tariff impact to remain muted and temporary. But in its bull-case scenario, HSBC expects the index to end the year at 7,000. "We believe there is still room for margins to expand in see valuations as stretched for the tech sector," HSBC strategists said in a note to clients. (Reporting by Kanchana Chakravarty in Bengaluru; Editing by Anil D'Silva and Shinjini Ganguli)
Yahoo
30-07-2025
- Business
- Yahoo
Whirlpool shares slump,; co slashes forecast and dividend
(Reuters) -Whirlpool's shares tumbled 12% on Tuesday after the home appliances maker slashed its full-year earnings forecast and dividend, blaming pressure from rivals loading up on imports ahead of U.S. President Donald Trump's tariffs. Shares of the Michigan-based company, known for its large appliances such as washing machines and refrigerators, slid 12.1% to $86, hitting their lowest level in more than six weeks. BofA Global Research downgraded Whirlpool's stock to "underperform" from "neutral" and cut its price target to $70, the second lowest on Wall Street. Whirlpool's stock was last at $85.64, and is now down 25% in 2025. Late on Monday, Whirlpool forecast 2025 earnings in the range of $6 to $8 per share, down from its prior forecast of $10. It expects net sales to be flat, compared with its earlier forecast of about 3% growth from a year ago. The company also slashed its annual dividend to $3.60 per share from $7. Whirlpool predominantly manufactures in the U.S., and it expects to benefit from Trump's tariffs on appliance imports in the long run. However, a rush by Asian manufacturers to sell their products ahead of the duties dented its earnings. "As expected, the second quarter continued to be impacted by competitors stockpiling Asian imports into the U.S.," CEO Marc Bitzer said. Whirlpool's profit warning comes as it grapples with slowing growth, and it has undergone a restructuring in recent years. Reuters reported last year that German engineering group Robert Bosch is weighing a bid for Whirlpool. BofA analysts wrote in a client note that Whirlpool's foreign rivals appear willing to sacrifice margins in the short term to protect their market share. "If tariffs result in another round of industry price increases, we see a risk that volume deteriorates in a weak consumer environment," BofA analysts also wrote. Whirlpool reported second-quarter net sales of $3.77 billion, missing Wall Street analysts' average estimate of $3.88 billion, according to data compiled by LSEG. Quarterly profit also dropped to $1.17 per share from $3.96 a year earlier. Power tools maker Stanley Black & Decker also reported lower profits over the lack of clarity on tariffs, sending its shares down about 8%.
