Results, banking sector bounce help European shares recover

European shares recovered on Wednesday from their biggest one-day loss in five months, as a rebound in banking stocks and some positive first-quarter results outweighed weakness in oil and gas stocks.

The pan-European STOXX 600 was up 0.2 percent at its close, after hitting a three-week low on Tuesday.

Britain’s FTSE .FTSE extended the previous session’s losses, dropping 0.1 percent and giving up its year-to-date gains as sterling strength weighed on its constituents, most of which are major exporters after UK Prime Minister Theresa May called for a snap general election.

“While the headline level of the FTSE 100 Index often falls when sterling strengthens, it is important to look at the performance of the index’s underlying constituent companies; those with domestic earnings and foreign costs have generally benefited materially,” Edward Park, investment committee director at Brooks Macdonald asset management, said.

Banking stocks .SX7P snapped a six-day losing streak – their longest run of daily losses for 11 months – to rise 1.8 percent, making them the top sectoral gainers.

Banco Popular (POP.MC) and UniCredit (CRDI.MI) were among top gainers, adding 5.5 percent and 6.1 percent respectively.

Sentiment was helped by Jefferies initiating coverage on Dutch bank ING Group (INGA.AS) with a “buy”, saying ING shares had 18.7 percent upside potential. ING rose 3.8 percent.

Basic resources .SXPP also bounced back, gaining 0.8 percent, while oil and gas stocks fell 0.7 percent as crude prices dipped on bloated U.S. supplies.

Earnings, which began in earnest for European companies, were mixed.

Meal voucher group Edenred (EDEN.PA) was a top gainer, up 5 percent after it posted higher first-quarter revenue growth and maintained its targets, boosted by growth in Latin America.

“Overall, we are encouraged by the strong start to the year and believe it means full year forecasts are well underpinned,” Barclays analysts said.

British luxury group Burberry (BRBY.L) was among the biggest European losers, down around 8 percent after it reported a slowdown in its fourth-quarter comparable sales growth rate, saying tough conditions in the U.S. outweighed an “exceptional” performance in its home market.

German retailer Zalando (ZALG.DE) fell 4.8 percent after it said it was happy with its first-quarter despite margin pressure due to post-Christmas sales discounting.

French media group Vivendi (VIV.PA) was the top CAC-40 faller, down 1.1 percent after Italy’s watchdog ordered the firm to cut its stake in Telecom Italia (TLIT.MI) or Mediaset (MS.MI).

The Italian broadcaster reversed losses to end 1.6 percent higher, while Telecom Italia also ended up 1.4 percent.

“Vivendi is very unlikely to sell down its 23.9 percent TI stake, in our view,” Jefferies analysts said.

Shares in British engineering group Cobham (COB.L) fell 8.7 percent after 683 million new shares were added to trading in its rights issue, raising 512.4 million pounds.

Originally reported by Reuters.

Remember, no issue has a quick fix solution. Thus, always ensure to consult highly knowledgeable group of professionals whom would provide you with a collective advice, never individual advice. This group advice and approach is unique with CWIIL Group and is based on the overall Management Philosophy of all CWIIL Group Companies.

Consulting CWIIL Group of Companies, for any / all investment matters ensures advice based on highest level of knowledge which are given to you by a team of select research-oriented experts whom each will do their own assessment of your matter, and also assess it together, thus ensuring that in case a mistake has been made by one, it will be noticed and corrected even before it is being passed on to you. Receiving incorrect and un-knowledgeable investment advice can be disastrous and thus should be avoided.

CWIIL Group of Companies is a global group of multi-specialised units with diversified interests and activities, wherein each company is a separate legal entity registered under prevailing laws in different parts of the world. CWIIL Group of Companies Products, Services, Project and Solutions are in a multitude of Verticals including, but not limited to, Infrastructure, Power, Oil & Gas, Legal, Media, Technology, ITES, HR, Shipping, Aviation, Real Estate, Hospitals, Health and Medicine, Education, Funding & Investment, Business and Legal Consultancy, and Public Private Partnerships, and other CWIIL Group Units, worldwide, to name a few.

For Further Queries or to Request a Personal Quote Feel Free to Contact :

Mr. Francis Thomas Matthews,
Deputy Global Director, No. 8
Marketing Research & Development Division,
Email : deputy.gd.8@cwiilgroup.eu
Voice : +45.8176.1924
Connect : LinkedIn I Twitter I Facebook I Tumblr

For Queries Specific to the EU Region :
Email : eu@cwiilgroup.com , hq@cwiilgroup.eu
Web : www.cwiilgroup.com , www.cwiilgroup.eu

For Any / All Other Queries :
CWIIL Group Global Regional Headquarters Denmark,
Address : No. 1, Klokkebjergevej, DK6900 Skjern, Denmark
Voice : +45.5148.3608
Fax : +45.7014.1498
Email : corpcomm@cwiilgroup.eu
Web : www.cwiilgroup.eu
Connect : LinkedIn – Twitter – Facebook – Quora

Office Hours :
Monday to Friday : 10.00 – 17.00 CET.
Saturday : 10.00 – 14.00 CET.
Sunday : Closed.

The Corporate Communications Team would require minimum a fortnight for Reviewing & Responding to Queries, which please note.

Advertisements

Let Us Know Your Thoughts

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: