European shares boosted by earnings on Wednesday

European shares rose on Wednesday, buoyed by strong corporate earnings, although gains were moderated by a disappointing earnings report from Novo Nordisk.

The STOXX 600 index climbed 0.8 per cent to 492.21 points, approaching the key 500 mark, with most European markets posting gains of nearly 1 per cent.

The healthcare sector was the exception, slipping 0.1 per cent, with Novo Nordisk shares falling 3.4 per cent after missing quarterly profit expectations and lowering its annual outlook. In contrast, Roche shares gained 1.6 per cent on news of a potential sale of Flatiron Health.

Investor sentiment improved as earnings reports took the spotlight, countering earlier concerns about a US recession.

The German DAX index rose 0.8 per cent, supported by a better-than-expected rise in industrial orders for June and a 4.7 per cent jump in Continental’s shares following strong results. Just Eat Takeaway surged 7.2 per cent after an upgrade from J.P. Morgan.

However, Puma’s stock plummeted 13 per cent due to a revised profit outlook, and Commerzbank saw a 5.5 per cent drop after a decrease in net profit. Beiersdorf also fell 2.7 per cent despite reporting solid sales growth. Investors are awaiting comments from European Central Bank officials for further market direction.

Attribution: Reuters