European Stocks Rise to 16-Month High as Media, Food Shares Jump

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European stocks advanced to a 16-month high as investors assessed earnings reports and gains in defensive shares outweighed declines in miners and banks.

The Stoxx Europe 600 Index added 0.2 percent at the close, after jumping as much as 0.7 percent earlier in the day. Food and beverage shares and media companies posted the biggest advances among industry groups.

  • Among shares moving on earnings reports, Tesco Plc slid 5.7 percent after saying it’s passing on less of the Brexit-induced increase in expenses to customers than any of its main competitors, spurring concerns about profitability. 
  • Puma SE jumped 9.1 percent after raising its 2017 earnings forecast.
  • Automakers snapped a seven-day losing streak, with Daimler AG’s first-quarter profit almost doubling. The German carmaker added 0.3 percent.
  • It’s still too early to buy value stocks after their recent selloff, Bernstein strategists including Alla Harmsworth wrote in a note, saying analyst expectations and investor positioning remain too optimistic.

— With assistance by Elena Popina

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