EUROPE MARKETS: European Stocks End With Gains, Helped By Upbeat Earnings
July 20 2017 - 4:37AM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
Akzo Nobel CEO resigns
European stocks finished with solid gains Wednesday, carried by
well-received corporate earnings reports including from Swedish
appliance maker Electrolux AB, while a more than $4 billion deal
drew Reckitt Benckiser Group PLC shares higher .
The Stoxx Europe 600 rose 0.8% to end at 385.54, erasing most of
the prior day's drop. The benchmark on Tuesday slid 1.1%, its worst
session since June 29, after the euro marched up to a 14-month
high.
Earnings wave: Attention on Wednesday swung to financial
results. Electrolux (ELUXY) sprang up 3%. The maker of washing
machines, refrigerators and other white goods raised its growth
forecast for the North American market after solid demand from the
region helped lift second-quarter net profit by 21%
(http://www.marketwatch.com/story/electrolux-profit-up-21-on-cost-savings-2017-07-19).
Shares of ASML Holding NV (ASML.AE) (ASML.AE) leapt 5.8% as the
Dutch semiconductor company said second-quarter net income rose 3%
(http://www.marketwatch.com/story/asml-income-rises-3-to-resume-share-buybacks-2017-07-19)
from the previous quarter, and that it's resuming its share buyback
program.
Tele2 AB shares (TEL2-B.SK) picked up 6.5% after the Swedish
telecom operator raised forecast for EBITDA to a range of 6.2
billion kronor and 6.5 billion kronor. It previously expected 5.9
billion kronor and 6.5 billion kronor.
But decliners included Volvo AB (VOLV-B.SK) as shares fell 3.4%
even as the truck maker said truck orders jumped 22%
(http://www.marketwatch.com/story/volvo-profit-jumps-on-22-rise-in-truck-orders-2017-07-19)
in the second quarter, and that it's seen continued recovery in its
construction-equipment unit.
Assa Abloy AB (ASSA-B.SK) also lost ground, with shares of the
lock maker dropping 5.5%. "Sales in China fell once again, and
disappointingly they also continued to decrease in Brazil and in
the Middle East," said Chief Executive Johan Molin in statement,
adding that sales in North America are developing well.
Second-quarter sales climbed 8%.
In other developments, Reckitt Benckiser (RB.LN) bulked up by
1.6% as the consumer products maker reached a deal to sell its food
division for $4.2 billion
(http://www.marketwatch.com/story/mccormick-to-pay-42b-for-reckitt-benckiser-unit-2017-07-19)
to U.S. spice seller McCormick & Co. (MKC) . McCormick plans to
integrate the RB Foods business -- which includes French's mustard
and Frank's RedHot hot sauce -- into its commercial and industrial
segments.
Dutch paint producer Akzo Nobel NV (AKZOY) said its chief
executive, Ton Büchner, has resigned for health reasons
(http://www.marketwatch.com/story/akzo-nobel-ceo-buchner-resigns-for-health-reasons-2017-07-19).
The unexpected move, however, shouldn't slow its plan to spin off
its chemicals business. Shares finished 0.3% higher.
Euro: The euro fetched $1.1514, down from $1.1555 late Tuesday
in New York. The euro on Tuesday leapt to a 14-month high above
$1.15 as the dollar slid. On Thursday, the European Central Bank
will release its latest policy decision.
ECB policy maker Francois Villeroy de Galhau on Wednesday said
in France
(http://www.reuters.com/article/us-ecb-policy-villeroy-idUSKBN1A40N7?il=0)
that loose monetary policy is still needed for the eurozone economy
although the central bank has helped push inflation toward its 2%
target.
Indexes: The exporter-heavy DAX 30 index closed up 0.2% at
12,452.05. The index on Tuesday dropped 1.3%, hurt in part as the
euro climbed.
France's CAC 40 index rose 0.8% to end at 5,216.07, and the
U.K.'s FTSE 100 was 0.6% higher at 7,430.91.
(END) Dow Jones Newswires
July 20, 2017 05:22 ET (09:22 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Apr 2024 to May 2024
FTSE 100
Index Chart
From May 2023 to May 2024