EUROPE MARKETS: European Stocks Buoyed By Earnings Before ECB's Draghi Steps On Stage
July 20 2017 - 4:41AM
Dow Jones News
By Carla Mozee, MarketWatch
Euro tries to cling to $1.15 before ECB meeting
European stocks gained on Thursday, as investors sifted through
corporate earnings reports while waiting to hear what the European
Central Bank will say about monetary policy.
The Stoxx Europe 600 tacked on 0.3% to 386.75, led by oil and
gas, basic materials and telecom shares. The utilities sector was
the only one losing ground. The pan-European benchmark on Wednesday
closed up 0.8%,
(http://www.marketwatch.com/story/european-stocks-advance-helped-by-upbeat-earnings-2017-07-19)
aided by well-received earnings reports.
Earnings season: A new wave of financial updates rolled in on
Thursday, with Publicis Groupe SA (PUB.FR) shares rising 1.7%. The
French advertising heavyweight confounded expectations by posting a
rise in second-quarter profit
(http://www.marketwatch.com/story/publicis-profit-up-as-us-revenue-turns-positive-2017-07-20)
as U.S. revenue turned positive.
Unilever shares (ULVR.LN) picked up 0.9% after the maker of Ben
& Jerry's ice cream and other consumer goods said reported a
sharp rise in first-half profit
(http://www.marketwatch.com/story/unilever-posts-profit-gain-lifts-margin-guidance-2017-07-20),
making good on its vow to improve performance after rebuffing a
Kraft Heinz Co. bid.
But on the downside, shares of Nordea Bank AB (NDA.SK) dropped
5.4% after the Swedish bank's second-quarter profit of 743 million
euros ($855.7 million) missed expectations
(http://www.marketwatch.com/story/nordea-profit-falls-domicile-decision-in-sept-2017-07-20).
ECB taper watch: Investors will be waiting to hear what the ECB
intends for its program of bond buying -- whether it will scale it
down in 2018 for an eventual wind-down.
Read:Why Mario Draghi can't back down from ECB taper hints
(http://www.marketwatch.com/story/why-mario-draghi-cant-back-down-from-ecb-taper-hints-2017-07-19)
The central bank is scheduled to release its statement on
monetary policy at 1:45 p.m. Frankfurt time, or 7:45 a.m. Eastern
Time. ECB President Mario Draghi will speak to the press at 2:30
p.m. Frankfurt time.
"[I]n an attempt to prepare the market, Mario Draghi is expected
to hint at a scaling back of their asset purchase program towards
the end of the summer," wrote Konstantinos Anthis, a researcher at
ADS Securities.
"The euro has had a very good run in recent weeks. Having a
strong currency is a plus for the European economy but it is also
stopping a rise in inflation, so is there a case for Draghi to
sound positive but not over the moon," he added.
The euro traded at $1.1504, down $1.1516 late Wednesday in New
York, ahead of the policy update. In recent sessions, the shared
currency climbed to a 14-month high above $1.15.
Individual indexes: In Germany, the DAX 30 index popped up 0.7%
to 12,540.29.
France's CAC 40 index rose 0.5% to 5,244.39, and the U.K.'s FTSE
100 was 0.5% higher at 7,469.89.
(END) Dow Jones Newswires
July 20, 2017 05:26 ET (09:26 GMT)
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