BLBG: European Stocks Rise Amid Earnings, Surprise Gain in Confidence
European stocks advanced amid earnings reports, extending gains after a report showed euro-area confidence unexpectedly rose in July.
Nokia Oyj jumped 8.5 percent after profitability at its network-equipment business improved. Royal Dutch Shell Plc climbed 3.9 percent as it announced cuts in jobs and investments, and agreed to sell a stake in a Japanese refiner. Renault SA slid 7.4 percent after its profit gain failed to keep pace with rival PSA Peugeot Citroen.
The Stoxx Europe 600 Index added 0.4 percent to 395.62 at 10:49 a.m. in London, after increasing as much as 0.7 percent earlier. A euro-area gauge of executive and consumer sentiment rose to a four-year high in July, while economists had called for a decline.
“The earnings are actually quite good. There are always some that disappoint,” said Andreas Nigg, head of equity and commodity strategy at Vontobel Asset Management in Zurich. “The selloff on Monday may have produced a new opportunity for investors to move in. M&A news probably helped push up some names that investors feel are potential targets.”
The Stoxx 600 has rebounded 2.6 percent since a five-day drop through Monday, amid deals and corporate results that beat predictions. The gauge has risen 3.8 percent in July, poised for its best monthly gain since February, as concern faded that Greece will exit the euro.
Technology and energy shares posted the biggest gains on the Stoxx 600 on Thursday, buoyed by rallies in Nokia and Shell respectively. Carmakers fell the most among 19 industry groups.
More Earnings
Among other shares active on corporate news, AstraZeneca Plc climbed 2.4 percent after reporting quarterly profit that beat analysts’ predictions. Deutsche Bank AG gained 2.9 percent after second-quarter net income more than tripled.
Electricite de France SA advanced 2 after first-half earnings rose and it agreed to take control of Areva SA’s nuclear business.
Anheuser-Busch InBev NV and Swiss Re AG declined at least 2.5 percent after their quarterly earnings missed estimates.
The Federal Reserve said late Wednesday that U.S. labor and housing markets are improving, lowering the barriers to an interest-rate increase forecast for this year. A report on Thursday may show the U.S. economy expanded 2.5 percent in the second quarter, after contracting in the previous three months.
