Earnings push European stocks higher
European stocks inched higher on Friday, as strong corporate earnings lifted investor spirits ahead of the release of euro zone economic growth data for the first quarter.
The pan-European STOXX 600 index was up 0.2% by 0720 GMT. The benchmark hovered below its all-time high and was on course to end April 2.3% higher.
British drugmaker AstraZeneca gained 2.7% on reporting betterthan-expected results and forecasting sales growth. Swedish Match rose 1.9% after the tobacco group reported a much higher first-quarter operating profit than expected. However, Barclays tumbled 6.2% despite reporting a quarterly profit that more than doubled, while France’s BNP Paribas slipped 1.0% after better-than-expected profit.
World stocks held near a record high as strong U.S. economic data, robust corporate earnings and the Federal Reserve’s commitment to continue supporting the economy fuelled investors’ appetite for risk.
Asian stocks had less luck, with MSCI’s ex-Japan index losing 0.6%, following a softer-thanexpected survey on China’s manufacturing.
MSCI’s broadest gauge of world stocks covering 50 markets, ACWI, however, was little changed and stood close to a record peak touched the previous day and up 5.1% on the month.
On Wall Street, the S&P 500 also closed at an all-time high while the Nasdaq Composite hit a intraday record before paring some gains.
The positive risk mood saw the euro extending its bull run to a two-month high of $1.2150 in the previous session and it last stood at $1.2115. With 3.3% gains so far this month, it is on course for its biggest monthly rise in 9 months.
Oil prices took a breather after hitting six-week highs on strong U.S. economic data. Brent slipped 0.8% to $68.00 per barrel, after having hit a high of $68.95 on Thursday while U.S. West Texas Intermediate (WTI) eased 0.9% to $64.41 per barrel.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.