European shares eke out gains as Sodexo, banks jump
Reuters
Published Nov 08, 2018 05:31AM ET
European shares eke out gains as Sodexo, banks jump
By Josephine Mason
LONDON (Reuters) - European shares were flat to slightly higher on Thursday, paring gains as a rally following the U.S. midterm elections sputtered while strong results from SocGen and Commerzbank and France's Sodexho soothed concerns about corporate earnings.
The pan-European STOXX 600 (STOXX) was up 0.3 percent at 1017 GMT, extending the previous session's gains. In early dealings, it had hit its highest since Oct. 10.
The leading index of euro zone stocks (STOXX50E) was flat, with Germany's DAX (GDAXI) down 0.1 percent and France's CAC 40 (FCHI) 0.2 percent higher.
"It's looking less robust in general," as investors take a more cautious stance ahead of the U.S. Federal Reserve's latest meeting later in the day, said Ken Odeluga, market analyst at CityIndex.
The banking and insurance indexes (SX7P) (SXIP) were among the top performing sectors, up 0.5 percent and 0.7 percent respectively.
Italy's third-largest lender Banco BPM (MI:BAMI) jumped 8.9 percent after its third-quarter net profit beat forecasts thanks to lower costs and an asset sale that helped offset flat fees and falling interest income.
Commerzbank (DE:CBKG) and SocGen (PA:SOGN) were up 4 percent and 3 percent respectively after solid earnings updates.
Investors shrugged off news that UBS (S:UBSG), Switzerland's largest bank, faces another potentially costly legal battle as the U.S. Department of Justice draws up civil charges over the sale of mortgage-backed securities in the run-up to the 2008 financial crisis.
The bank has said it will contest any complaint vigorously.
Analysts at Zuercher Kantonalbank reckon more than half of the 1.2 billion Swiss francs ($1.20 billion) UBS has set aside for non-core legal risks was dedicated to the U.S. case.
"UBS was one of the most high profile banks that hasn't suffered from DoJ investigation. It was one of the smaller issuers, which is may be why the DoJ has probably left them til last," said CityIndex's Odeluga.
Sodexo (PA:EXHO) was flying high after the world's second-biggest catering company's better-than-expected revenue. Shares in jumped 6.4 percent to their highest since March and on track for their best day since July.
Hikma Pharmaceuticals (L:HIK) rallied 6.6 percent after raising its full-year revenue outlook for the injectibles division, its largest unit.
It wasn't all good news though. Shares of broadcaster ProSiebenSat.1 (DE:PSMGn) plunged 15 percent to the bottom of the STOXX 600, hitting lowest level in more than six years after cutting its dividend and warning on its full-year outlook.
Get The News You Want
Inmarsat (L:ISA) sank 7.1 percent after its results revealed weakness in its maritime division.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.