Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Earnings hopes lift Europe stocks to near 3-week high

Published 10/12/2009, 07:29 AM
Updated 10/12/2009, 07:33 AM
UK100
-
C
-
INTC
-
BARC
-
BP
-
UBSN
-
SIEGn
-
ALUA
-
TTEF
-
NOKIA
-
IBM
-
GC
-
CL
-

* FTSEurofirst 300 up 1.2 percent, reaches highest since Sept 23

* Philips' forecast-beating results boost sentiment

* Banks gain ground, now up 171 percent from March floor

* For up-to-the-minute market news, click on

By Blaise Robinson

PARIS, Oct 12 (Reuters) - European stocks were up 1.2 percent by midday on Monday, hitting a near three-week high, as forecast-beating results from Philips fuelled hopes over results ahead of this week's earnings from bellwethers.

At 1110 GMT, the FTSEurofirst 300 index of top European shares was up 1.2 percent at 1,010.24 points, after rising to as high as 1,010.55 points, the index's highest level since Sept. 23.

Shares of Philips surged 6.1 percent after posting better-than-expected third-quarter results, as the world's biggest lighting maker and Europe's biggest consumer electronics producer benefited from cost-cutting measures.

Shares of tech companies and conglomerates gained ground, with both Siemens and Nokia up 2.7 percent, while Alcatel-Lucent soared 5.2 percent, also helped by a rating upgrade from Societe Generale, which upgraded its recommendation on the stock to "hold" from "sell".

"We're testing the resistance on the upside at the moment, but to resume the upside trend, we need good quarterly results," said David Thebault, head of quantitative sales trading, at Global Equities, in Paris.

"The figures from Philips bode well for the earnings season, because the company's businesses range from healthcare to technology, touching a lot of sectors. It's a good indication of what to expect. Overall, I think this earnings season will be strong."

Investors eagerly awaited quarterly results from U.S. bellwethers Intel Corp, Johnson & Johnson, Citigroup, Bank of America, Goldman Sachs, JPMorgan, Google, IBM and General Electric, expected to report this week.

Banks and insurance stocks rose on Monday, with HSBC up 0.8 percent, UBS up 1.3 percent and Allianz up 2 percent.

BUOYANT OIL BOOSTS ENERGY STOCKS

The banking sector, which had a dismal 2008, has jumped 171 percent since the market reached a floor in early March, outpacing the FTSEurofirst 300, which is up 56 percent over the same period.

Barclays bucked the trend on Monday, down 1.2 percent. The Financial Times reported the UK lender is planning to spin off a 4-billion-pound ($6.35 billion) portfolio of complex credit assets in a bid to further clean up its balance sheet.

Shares of oil companies gained ground as crude oil futures hit the $73 mark, up nearly 2 percent, on optimism over the pace of global economic recovery and indications of stronger oil demand.

Total added 1.5 percent, Repsol rose 1 percent and BP gained 1.4 percent.

Around Europe, UK's FTSE 100 index was up 1.1 percent, Germany's DAX index up 1.5 percent, and France's CAC 40 up 1.3 percent.

So far this year, the FTSEurofirst 300 is up 21 percent, the FTSE 100 up 18 percent, the DAX up 21 percent and the CAC up 20 percent. (Reporting by Blaise Robinson; Editing by Hans Peters)

Latest comments

Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.