Europe Stocks Wobble Around Two-Month High
European stock markets struggled for direction on Tuesday, with Credit Agricole SA rallying after a well-received earnings report, while Salzgitter AG slumped after a profit warning.
The Stoxx Europe 600 index was slightly higher at 304.79, setting the benchmark on track for a seventh straight day of gains. On Monday it closed at the highest level since late May.
Shavaz Dhalla, financial trader at Spreadex, said in a note that markets were range-bound as “investors showed symptoms of fatigue after an exhausting time last week owing to a raft of corporate and economic data. Although there is still a tranche of corporate data due from the U.S. today, at least traders will have not have to grapple with the same volume of data from European companies.”
“Whether such a respite will give investors an opportunity to take a break and rethink their positions, or instead fret over the outcomes of the corporate data from the U.S., is perhaps another issue,” he added.
Among notable movers in the pan-European index, shares of Crédit Agricole gained 4.3% after second-quarter profit surged to 696 million euros ($922.7 million), up from €56 million a year earlier.
German TV operator Sky Deutschland AG climbed 5.9% after it narrowed its net loss in the second quarter and confirmed its full-year outlook.
On a more downbeat note, shares of Salzgitter slumped 6.7% after the steelmaker late Monday cut its profit guidance for the second time this year.
Shares of GlaxoSmithKline PLC dropped 1.1% after Citigroup cut the drug maker to neutral from buy, saying the stock seems fairly valued in the near term after a period of outperforming the sector.
HSBC Holdings PLC lost 1.2% after Deutsche Bank cut the bank to hold from buy on the back of a disappointing earnings result out on Monday.
Among country-specific indexes, the U.K.’s FTSE 100 index dropped 0.3% to 6,601.12. Germany’s DAX 30 index fell 0.2% to 8,385.53, while France’s CAC 40 index was slightly higher at 4,050.79.
Source : Ahram
