Stoxx 600 Rises for Second Day as Earnings Season Gains SteamBy
Positive corporate results and energy producers tracking gains in oil helped push European stocks to a second consecutive gain.
The Stoxx Europe 600 Index advanced 0.5 percent at the close, with the earnings season entering its busiest period. The benchmark index is still down 3.5 percent from a peak in May, hurt by concern that a recent rally in the euro could derail Europe’s earnings recovery.
- Earnings so far have been mixed, according to Peter Oppenheimer, chief global equity strategist at Goldman Sachs. Banks have reported good results, while companies in the industrial sector have posted the largest negative surprises, the strategist wrote in a note.
- Peugeot manufacturer PSA Group and Lonza Group AG climbed at least 3.2 percent after reporting profit increases in the first half. ASM International NV slid 6.2 percent after its quarterly results missed some estimates.
- The euro’s recent strength has raised concern it will hurt the region’s earnings outlook, with $1.20 seen as the“pain threshold”, according to a Bloomberg survey.
- Still, the worst overshoot appears to be behind markets given the level of speculative positioning in the single currency, Jefferies strategists wrote in a note.
— With assistance by Elena Popina