European stocks higher on strong earnings
On Thursday European stocks opened higher as earnings reports underscored that the continent’s economy is on the mend. The dollar reversed gains made after the Federal Reserve’s policy meeting. Iron-ore futures fell the most in three months.
The Euro Stoxx 50 index gained for a third day and the Stoxx Europe 600 and FTSE 100 also headed higher after first-quarter earnings from companies including HSBC Holdings Plc and Royal Dutch Shell Plc beat analysts’ estimates.
A rebounding European economy and a string of upbeat earnings are prompting firms from Morgan Stanley to Deutsche Asset Management to boost allocations to the region’s stocks. After trailing for most of last year, the Stoxx Europe 600 Index has outpaced the S&P 500 Index. In the U.S., risks are mounting over how the Trump administration will execute on promised fiscal easing as an overhaul of the health-care system encounters Congressional roadblocks.
HSBC Holdings Plc rose the most in almost five months as it posted a surprise increase in first-quarter revenue on a jump in trading income that topped most rivals. Adjusted revenue rose 2 percent, compared with a 9 percent drop forecast by analysts, driven by loan growth in Asia as well as the investment bank’s performance, the London-based lender said.
The Stoxx Europe 600 Index advanced 0.4 percent, while the FTSE 100 jumped 0.3 percent.
Metals weighed on Asian stocks even after the U.S. Federal Reserve seemed unfazed about slower first-quarter growth in the world’s largest economy. The MSCI Asia Pacific excluding Japan Index fell 0.3 percent to 487.44 as of 4:41 p.m. in Hong Kong, with the materials group leading losses. Equity markets in South Korea and Hong Kong reopened after Wednesday’s holiday while Japan remains closed for the rest of the week.
Iron-ore futures slid 5.3 percent. Copper futures dropped 0.4 percent extending Wednesday’s worst tumble since 2015. Oil declined 0.7 percent to $47.46 a 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.