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Europe stocks advance on earnings; DAX up 0.12%

Published 02/02/2011, 04:52 AM
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Investing.com – European stock markets posted modest gains on Wednesday, as upbeat corporate earnings results lifted market sentiment, while U.S. futures indexes pointed to a mixed open on Wall Street.

During European morning trade, the EURO STOXX 50 climbed 0.11%, France’s CAC 40 was up 0.07%, while Germany's DAX added 0.12%.

Shares in the financial sector performed strongly after Spain’s second largest lender BBVA reported a 96% jump in fourth quarter profit. The banking giant said fourth quarter earnings totaled EUR939 million, compared to EUR31 million a year earlier, when bad loans weighed on financial results. BBVA saw shares gain 0.75%.

Shares in Italy’s largest lender Unicredit jumped 2.24%, Europe’s largest banking group BNP Paribas saw shares rise 1.33%, while shares in rival Credit Agricole added 1.47%.  

Meanwhile, shares in Europe’s largest solar energy producer Renewable Energy Corporation surged 10.32% after it said fourth quarter profit rose to EUR224 million, exceeding market expectations for profit of EUR164 million.  

Elsewhere, shares in German automaker Daimler climbed 0.48% after Citigroup recommended buying the stock, citing “continued strong industry fundamentals.”

In London, the commodity-heavy FTSE 100 was up 0.64% as raw material stocks led gains after metal prices advanced.

Shares in the world’s largest mining group BHP Billiton jumped 2.14%, rival Rio Tinto saw shares gain 1.72%, while shares in copper producer Xstrata surged 2.31% after copper prices rose to an all-time high on Tuesday.

Meanwhile, shares in the world’s fourth largest tobacco group Imperial Tobacco rallied 5.13% after it posted a 5% increase in first quarter revenue. The company reaffirmed its full-year earnings outlook, as emerging market revenues from Eastern Europe, Africa and the Middle East were “strong”.

The outlook for U.S. equity markets, meanwhile, was mixed ahead of earnings reports from the world's second largest entertainment conglomerate Time Warner and from media giant News Corp.

The Dow Jones Industrial Average futures pointed to a gain of 0.11%, S&P 500 futures indicated a rise of 0.03%, while the Nasdaq 100 futures pointed to a drop of 0.09%.

Later in the day, the U.S. was to publish private sector employment data compiled by payroll processing company ADP.

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