50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

European shares supported by utilities, Safran as trade woes loom

Published 09/06/2018, 05:23 AM
© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt
GS
-
AIR
-
AAPL
-
CNA
-
WEIR
-
ENEI
-
EXHO
-
SAF
-
DLGS
-
STOXX
-
AMS
-
3008
-

By Danilo Masoni

MILAN (Reuters) - European shares were buoyed on Thursday by gains among utility stocks although fresh losses in emerging markets and worries Washington will follow through on plans to levy an extra $200 billion of Chinese imports kept investors on the edge.

The pan-regional STOXX 600 (STOXX) benchmark hit its lowest level since early April in early trading but later turned slightly positive to trade up 0.1 percent by 0854 GMT.

"The turmoil within emerging markets also continues, widening from Argentina and Turkey, (is) dampening global sentiment even further all the while we await the U.S. decision on additional China import tariffs," Accendo Markets analyst Mike van Dulken said.

A consultation period on the proposal to slap fresh tariffs on China ends on Thursday, paving the way for a decision, although it is unclear how quickly that will happen.

Utilities were the strongest gainers with Italy's state-controlled Enel (MI:ENEI) rising 2.5 percent after Goldman Sachs (NYSE:GS) upgraded the stock to buy. Analysts at the U.S. bank said Enel has the capacity to buy back 10 billion euro worth of shares over the coming years.

In Britain, Centrica (L:CNA) added 3.7 percent after the local regulator set an energy price cap that was at the lower range of analysts' expectations.

Top gainer on the STOXX was Safran (PA:SAF) which rose to a fresh record high after a strong update.

The world's No. 3 aerospace supplier raised full-year forecasts following better-than-expected results in the first half on strong demand for spares and services.

Safran gained 6 percent, supporting other aerospace stocks including plane maker Airbus (PA:AIR), which rose 1.8 percent.

Among top fallers was Sodexo (PA:EXHO), down 5 percent, after the French food services and facilities management group unveiled a new strategic plan that failed to dispel concerns that the road to recovery would be long.

Sodexo, whose shares been hit this year after warnings mostly related to weaknesses in the North American business, said it planned to deliver revenue growth above 3 percent by fiscal year 2019/20.

"Financial targets out to 2020 are relatively muted and would suggest it will take time for any material improvements to be delivered," RBC Capital Markets in a note.

Weir Group (L:WEIR) led fallers, down 6.3 percent after the maker of pipes for the energy and mining industries said there were initial signs of pricing pressure and flagged a softening in demand.

© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

Apple (NASDAQ:AAPL) suppliers Dialog Semiconductor (DE:DLGS) and AMS (S:AMS) fell 2.5 and 1.5 percent respectively with traders citing disappointing August sales unveiled by Taiwanese peer Largan Precision (TW:3008).

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.