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European stocks grow profits with earnings optimism

European equities rose to record highs on Wednesday as optimism over economic recovery and profit growth outweighed concerns about the spread of Delta variants in China.

In economic releases, the eurozone private sector has grown the most in July over 15 years. This is underpinned by the rapid growth in manufacturing output and the accelerating expansion of service activities, with IHS Markit’s final data presented earlier today.

The combined output index rose from 59.5 last month to 60.2. However, the reading was below the flash score of 60.6.

Elsewhere, the UK’s service sector recovery slowed in July with record inflationary pressures.

Data separate from Eurostat reveals that retail sales in the euro area slowed in June, primarily due to lower food sales.

Retail sales are up 1.5% on a monthly basis, up 4.1% in May, slower than economists’ forecast of 1.7%.

On an annual basis, retail sales growth settled at 5% from 8.6% last month. Sales were projected to increase by 4.5%.

After rising 0.2% on Tuesday, the Pan-European STOXX 600 index rose 0.6% to 467.92. Germany’s DAX rose 0.7%, France’s CAC 40 index rose 0.5%, and the UK’s FTSE 100 rose 0.4%.

Hugo Boss rose 1.3%. German fashion house returned to growth in the second quarter jobs Will continue later this year.

Commerzbank lost 4.3% after creditors turned to losses in the second quarter. This was hit by one-time costs, including restructuring-related costs, with the closure of hundreds of branches and a 10,000 headcount reduction.

Schaeffler fell 1.3%, despite strong performance every six months by automotive and industrial suppliers, raising guidance for 2021.

Thales shares rose 1.6%. The French aerospace company has announced that it is in preliminary talks to sell its rail signal business to Hitachi in Japan for about $ 2 billion.

Taylor Winpay rose 3.2%. UK homebuilders have raised their full-year earnings outlook after building a record number of homes in the last six months.

Rolls-Royce Holding added 1.6%. The engine manufacturer has agreed to sell Bergen Engines’ medium-speed liquid fuel and gas engine business to the global engineering group Langley Holdingsplc for a corporate value of € 63 million.

Ferrexpo lost 3.8 percent. The world’s third-largest exporter of iron ore pellets expects demand for iron ore to decline from current record levels in the second half of the year.

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European stocks grow profits with earnings optimism

Source link European stocks grow profits with earnings optimism

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