Foreign Stock Roundup: Novartis, Bayer, Glaxo, Total Beat On Earnings
Zacks Investment Research | Oct 29, 2017 10:01PM ET
The ECB’s policy announcement and tensions in Catalonia were the major events dominating the European landscape last week. However, investors chose to focus on earnings numbers on several occasions though the ECB’s dovish stance gladdened them. Japan’s markets received a boost after prime minister Abe’s ruling coalition secured an even larger majority after a snap election. Other Asian markets were guided by earnings and the fortunes of the euro. Meanwhile, political events continued to guide Latin America’s stocks.
ECB’s Dovish Stance, Strong Earnings Negate Catalonia Tensions
Stocks across Europe gained moderately last Monday after earnings results were able to deflect the attention of investors from the Catalonia crisis. The STOXX 600 lost out on some of its early gains to increase by 0.2%. The CAC 40, DAX, and FTSE 100 gained 0.3%, 0.1% and 0.02%, respectively. Tech stocks were the leading gainers for the day, having increased by 1.3%.
The STOXX 600 increased 0.4% last Tuesday with nearly all the industrial sectors closing in the red. Travel and leisure and healthcare stocks declined more than 1%, emerging as the biggest losers of the day. Corporate earnings continued to dominate market proceedings. Meanwhile, Spain’s government dismissed the government of Catalonia in an attempt to clamp down on the demand for independence. Despite this decision, the country’s benchmark IBEX index gained 0.4%.
Disappointing earnings reports led to losses for Europe’s stocks last Wednesday. The STOXX 600 closed in the red with nearly all industrial sectors closing the day with losses. Strong earnings numbers helped Lufthansa (OTC:DLAKY) gain more than 3% to emerge as the biggest gainer for the DAX. Share of Heineken (OTC:HEINY) lost more than 3% after it reported strong third quarter sales in all of its markets except Europe.
The STOXX 600 finished in the green last Thursday after the ECB said that it will be slashing the level of bond purchases every month, but will extend the duration of the stimulus program. The central bank has also promised to buy €30 billion in bonds instead of €60 billion beginning January 2018, and intends to extend its monetary stimulus program till September 2018 at least. (Read: Zacks Investment Research
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