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Reuters
19 hours ago
- Business
- Reuters
European stocks close at two-month highs propelled by earnings, defence stocks
Aug 14 (Reuters) - European shares closed at their highest level in more than two months on Thursday, with aerospace and defence stocks and financials providing the biggest boost as investors assessed a spate of corporate earnings. The pan-European STOXX 600 index (.STOXX), opens new tab closed 0.6% higher, after touching a two-week intraday high. Industrial stocks (.SXNP), opens new tab were among the biggest sectoral gainers, with aerospace and defence companies taking charge. The broader index (.SXPARO), opens new tab gained 2.2% after coming under pressure ahead of Friday's summit between U.S. President Donald Trump and Russian President Vladimir Putin. Richard Flax, chief investment officer at Moneyfarm, said that despite expectations of Europe spending more on defence, questions remained about when it would come through and how much would go to European firms. Upbeat corporate earnings reports also aided sentiment. Insurers (.SXIP), opens new tab were up 0.9%, after trading near record highs touched last Thursday earlier in the session. London's Admiral (ADML.L), opens new tab hit a record high, rising 6.6% after a strong first-half profit, while Aviva (AV.L), opens new tab jumped 2.6% to its highest since December 2007, after raising its interim dividend after reporting stronger half-year operating profit. Dutch payments firm Adyen ( opens new tab slumped 4.9% after it cut its annual revenue forecast. Most regional indexes traded higher, with Britain's FTSE (.FTSE), opens new tab reversing earlier losses to gain 0.1%. Markets have gained in recent weeks on optimism around the Federal Reserve delivering an interest rate cut as soon as next month. However, U.S. economic data on the day erased expectations of a 50 basis point cut next month. "There's kind of continued optimism about prospect for lower rates in the US... PPI figures today tempered things a little bit, but the expectation continues to be that we'll see rates come down," said Flax. Data showed Britain's economy slowed less than expected in the second quarter after a strong start to 2025, despite U.S. trade tariffs and a weaker jobs market, offering some relief to Finance Minister Rachel Reeves. Among others, Embracer ( opens new tab slumped 23.4%, its worst day since May 2023, and fell to the bottom of the STOXX 600, after the gaming company reported a first-quarter operating profit and forecast annual earnings well below market expectations. Thyssenkrupp ( opens new tab tumbled 8.7% after the German conglomerate cut its full-year outlook for investments and sales, citing disruption from U.S. tariffs. FLSmidth ( opens new tab rose 6.7%, the most on STOXX 600, after the Danish mining and cement technology supplier reported second-quarter results and updated annual forecast. Carlsberg ( opens new tab fell 7.1% after the Danish brewer missed half-year profit and volume forecasts, and said it did not expect any improvement in the consumer environment this year.
Reuters
2 days ago
- Business
- Reuters
European shares rise on Fed rate cut hopes
Aug 13 (Reuters) - European shares advanced on Wednesday, with technology and defence stocks leading gains, as global mood remained buoyant after tame U.S. inflation data cemented expectations of interest rate cuts by the Federal Reserve. The pan-European STOXX 600 index (.STOXX), opens new tab rose 0.4%, as of 0704 GMT, with Germany's blue-chip DAX (.GDAX), opens new tab up 0.6% after dipping in the previous session. Global stocks rallied and Wall Street closed at record highs as traders priced in a 94% chance of a Fed rate cut in September, according to the CME FedWatch tool. Meanwhile, leaders from Europe and Ukraine are set to speak to U.S. President Donald Trump later in the day ahead of his summit with Russian President Vladimir Putin. TUI ( opens new tab rose 1.7% after Europe's largest tour operator posted better-than-expected results as summer travel proved to be resilient. ( opens new tab reported a bigger first-half core profit and maintained its full-year outlook with Europe's largest energy grids operator calling on Germany to raise future returns on grid investments. Shares were marginally up. Vestas ( opens new tab fell 1.8% after the wind turbine maker reported a smaller-than-expected rise in operating profit for the second quarter but maintained its fiscal-year financial outlook.
Irish Times
09-07-2025
- Business
- Irish Times
European shares hit four week high
Banking and defence stocks aided European markets in closing at a four-week high on Wednesday. Investors awaited signs of progress on a trade accord between the United States and the European Union despite latest Trump threats. Dublin The Iseq All-Share index ended the session down 0.02 per cent to 11,480.17 as big caps Ryanair, Kerry Group and Glanbia led the losses. Airliner Ryanair fell 1.02 per cent to €24.34, while defensive stocks Kerry Group and Glanbia dropped 0.98 and 0.95 per cent respectively. READ MORE Homebuilders Glenveagh and Cairn Homes continued gains on Wednesday following news that the Government is looking at reducing the minimum apartment size in an effort to reduce the cost of construction. Glenveagh gained 2.13 per cent, rising to €1.82; and Cairn Homes added 1.9 per cent to reach €2.14. In a mixed day for the banks, with Permanent TSB shares struggling for direction as Bank of Ireland rose 1.46 per cent and AIB added 1.01 per cent. London The UK's FTSE 100 closed slightly higher on Wednesday, as investors monitored developments around U.S. tariff talks, while ad firm WPP slumped after it slashed its profit forecast. WPP's stock fell about 19 per cent, its biggest single-day percentage drop in more than three decades, as the company cut guidance after some big clients left, others cut spending and new business dried up in June. The stock weighed on the blue-chip FTSE 100, which closed up just 0.2 per cent. Copper prices at the London Metal Exchange fell, as those in the US traded at a premium, reflecting concerns that elevated prices across the Atlantic could suppress demand. Europe The pan-European STOXX 600 index rose 0.8 per cent to its highest close in nearly a month. Italy's bank-heavy benchmark jumped 1.6 per cent to its highest since 2007. Lender UniCredit was among the biggest gainers on the index, advancing 4.6 per cent to its highest since 2011. A broader gauge of euro zone banks climbed 2.7 per cent to its highest level since 2010, with French bank Société Générale also advancing 4 per cent The index tracking European defence companies gained 1.4 per cent to reach an all-time high, as German defence contractor Renk added 5 per cent following reports that company was considering selling its civilian industrial unit, or part of it. Shares in some European pharmaceutical companies fell, including Zealand Pharma falling 2.7 per cent and Novo Nordisk losing 1.5 per cent. Norwegian engineering group Kongsberg dropped 12 per cent as analysts said they saw some weaknesses in different parts of the results. On the bright side, EssilorLuxottica jumped 5.6 per cent following reports that Meta Platforms has acquired a nearly 3 per cent stake in the eyewear maker. New York Wall Street's main indexes ticked up in mid-afternoon trading on Wednesday as Nvidia rocketed to a $4 trillion (€3.4 trillion) valuation, while investors digested president Donald Trump's latest tariff salvo. Mr Trump ramped up his trade offensive on Tuesday, announcing a 50 per cent tariff on copper and vowing to slap long-threatened levies on semiconductors and pharmaceuticals. This came just a day after he jolted 14 trading partners with a fresh wave of tariff warnings, and said that at least seven new notices would drop later in the day. Markets' reaction have been relatively stable with analysts noting that investors have become used to Mr Trump's pattern of sabre-rattling on tariffs, and that the White House will potentially back down from its most aggressive threats. Among stocks, AES Corp rose after Bloomberg reported that the power provider was exploring options, including a sale. Health insurer UnitedHealth Group slipped after the Wall Street Journal reported that the US Department of Justice was investigating how the company deployed doctors and nurses to gather diagnoses that increased its Medicare payments. Boeing advanced as Susquehanna raised its price target after the planemaker on Tuesday reported that its airplane deliveries in June increased by 27 per cent on a yearly basis. – Additional reporting, Reuters, PA.
