LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Biggest gains for European stocks since Macron's first round win

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Wed, Jul 12, 2017
09:55 pm
Reuters

A run higher for energy shares and miners, as well as strong updates from Norwegian lender DNB, and a more dovish tone from U.S. Federal Reserve Chief Yellen, helped drive European shares up on Wednesday, though renewed pain for publisher Pearson weighed on the media sector.

The pan-European STOXX 600 index was up 1.5 percent, as were euro zone stocks and blue chips, enjoying their best day`s gains since April 24, when Macron`s first round victory quashed market fears of a protectionist French president.

European shares made early gains and were given a second wind in afternoon trading when Federal Reserve Chair Janet Yellen dampened expectations of more than one interest rate hike this year.

All sectors were in positive territory, with miners, construction and healthcare sectors leading. A slower pace of interest rate raises is positive for equities, which benefit when their yield is relatively higher than other asset classes such as bonds.

Norwegian lender DNB led the banking sector higher, up 5.7 percent after its second-quarter earnings came in significantly above forecasts, helped by a rise in lending margins and lower losses on its portfolio.

Luxury goods group Burberry was a strong gainer, rising 3.2 percent after reporting 3 percent underlying revenue growth in the first quarter, helped by robust demand in mainland China and continuing good performance in its British market. [nL8N1K30VY]

"(This is) the strongest performance for at least three years in terms of ... same store sales, and also the signs of an underlying rebound in demand in mainland China are very, very promising," Ken Odeluga, market analyst at City Index, said.

Peers Kering and LVMH also rose 2.4 percent and 0.9 percent respectively.

Online retailer Zalando gained 4.2 percent after broker Societe Generale started its coverage of the stock with a "buy" rating, saying that it had the potential to play a much broader role in the future of fashion retailing.

With the European second quarter results season just around the corner, earnings are expected to increase by over 9 percent from the same period in 2016, which would be a rise of over 6 percent excluding the energy sector, according to Thomson Reuters I/B/E/S estimates.

Strength in oil and metals prices helped lift the heavyweight European energy sector and basic resources, which gained 1.5 and 1.9 percent respectively.

The cyclical autos sector was led by a 3.1 percent rise in Valeo shares, which gained after the car parts maker said it was eyeing a sale of a unit to Raicam.

Education publisher Pearson continued its slide from the previous day when it announced plans to sell its stake in Penguin Random House, down around 4.7 percent as broker downgrades and cuts to estimates rolled in.

Investec, Panmure and Credit Suisse were among brokers revising down their targets for Pearson, with worries around its dividend persisting.

"The guidance suggests a dividend of around 15p for 2017, rising to perhaps 18p at the most by 2019. This implies a dividend yield range of 2.3-2.7 percent and essentially takes away any yield support for the stock, in our view," analysts at Panmure Gordon said.

Shares in British oil and gas services company Amec Foster Wheeler slumped more than 8 percent after confirming that Britain`s Serious Fraud Office (SFO) was investigating the firm and individuals associated with the business.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:

LATEST NEWS

Rakesh Jhunjhunwala Stocks: Experts bet big on these two stocks with bumper returns

CBSE Class 10, 12 exams 2021 cancel request: BIG Assurance comes from CBSE; This is what Board says now

JEE Main 2021: April session admit cards expected to be out SOON at NTA website - see how to download and all other details here

TCS, Infosys, MindTree – Ahead of TCS result what to do with this stock? Profit booking seen in Infosys, Mindtree

CBSE Board Exam 2021: Students, do not miss this latest news! Will CBSE CANCEL class 10 class 12 board exams? Check UPDATES here

Gold Price Today 12-04-2021: Weekly investment strategy on Gold, Silver - Outlook remains STRONG - BUY bullion at these levels

Samsung Galaxy A52 review: All-rounder smartphone in mid-range - amazing design

Stocks to Buy With Anil Singhvi: This company can generate good returns for investors - what Varinder Bansal said

Sonu Sood gets larger role in Covid-19 fight effort; here is what actor says will ask everyone to do

Haridwar Kumbh Mela 2021: 2nd Shahi Snan today; Mela inspector says difficult to ensure social distancing at 'Har Ki Pauri'

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved