BLBG: European Stocks Advance as UBS, Adidas Earnings Exceed Estimates
European stocks advanced for a second day as companies including UBS Group AG and Adidas AG posted better-than-estimated results.
UBS rose 6.5 percent as Switzerland’s biggest bank said net income in the first three months of the year almost doubled. Adidas added 2.4 percent after first-quarter earnings topped forecasts.
The Stoxx Europe 600 Index gained 0.4 percent to 398.21 at 11:27 a.m. in London, after earlier rising as much as 1.1 percent. Shares rebounded Monday after their biggest weekly loss since December, as data showed manufacturers raised prices for the first time in eight months. The index has risen 16 percent this year amid a weaker euro and unprecedented monetary stimulus, prompting the European Commission to raise its euro-area growth forecast.
“I don’t think there’s anything out there that could make us think last week was anything other than a modest slowdown after a pretty decent rally year-to-date,” said Peter Dixon, an economist at Commerzbank AG in London. “There’s a lot of catching up to do. Earnings have been OK so far and Adidas and UBS are important stocks.”
The U.K.’s FTSE 100 Index gained 0.4 percent, with the market reopening after a holiday. The Swiss Market Index rallied 0.8 percent. Greece’s ASE Index fell 3.3 percent, set for its worst drop in two weeks after the gauge closed at its highest level since March 6.
Stoxx 600 automakers gained 0.6 percent as the euro fell for a second day, and health-care companies added 0.8 percent, with Roche Holding AG and GlaxoSmithKline Plc up at least 0.9 percent.
Infineon Gains
Among other stocks moving on corporate news, Infineon Technologies AG advanced 3 percent after Germany’s largest chipmaker reported better-than-estimated quarterly sales. Metro AG climbed 1.5 percent after the German retailer posted a narrower second-quarter loss than analysts estimated.
Fiat Chrysler Automobiles NV rose 1.7 percent after Il Sole 24 Ore reported that the carmaker is close to choosing banks to run the spinoff of its Ferrari unit.
HSBC Holdings Plc fell 2.1 percent after Europe’s largest bank reported an increase in first-quarter profit. It also took a $139 million provision at the global private banking division, without giving details.
