European Markets Inch Higher After Yesterday’s Strong Rally

The majority of the European markets ended Tuesday’s session with modest gains, following yesterday’s strong rally. The markets surged Monday after Emmanuel Macron’s victory in the first round of the French presidential election on Sunday.

France’s outgoing president, Francois Hollande, has urged voters to back centrist Macron in the second round of the election on May 7, warning that far-right leader Marine Le Pen would be a “massive risk” for the economy and jobs.

Tuesday’s gains were more modest as the euphoria from Macron’s victory has begun to fade. Investors shifted their focus to corporate earnings results and a deal between France’s LVMH and Christian Dior.

The pan-European Stoxx Europe 600 index advanced 0.26 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 0.16 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.34 percent.

The DAX of Germany climbed 0.10 percent and the CAC 40 of France rose 0.17 percent. The FTSE 100 of the U.K. gained 0.15 percent and the SMI of Switzerland finished higher by 0.73 percent.

In Frankfurt, SAP rose 0.23 percent. The business software provider reported a 9 percent fall in first-quarter profit, but said sales of its Internet cloud-based offerings are picking up momentum.

Aixtron soared 13.43 percent after the semiconductor firm narrowed its first-quarter net loss.

Sportswear company Puma gained 1.67 percent as it set a new quarterly record for sales between January and March.

Continental AG dropped 2.69 percent. According to Bloomberg, the automotive components supplier held talks with U.S. peer Delphi Automotive Plc earlier this year about merging parts of their powertrain divisions.

In Paris, Luxury goods conglomerate LVMH rose 3.94 percent and Christian Dior jumped 11.09 percent as LVMH announced it would buy out the minority interest held by Christian Dior SA in a €12.1 billion deal.

Essilor gained 0.89 percent after confirming its fiscal 2017 targets.

In London, Hikma rallied 3.64 percent and Shire rose 1.37 percent after German healthcare firm Fresenius announced two acquisitions worth combined more than $5 billion.

Whitbread sank 7.13 percent. The hotel and restaurant group warned of ‘tougher consumer environment’ going forward as a result of the U.K. leaving the EU.

Mining stocks were under pressure after Goldman Sachs said tightening conditions in China may have an impact on commodity demand. BHP Billiton dropped 0.66 percent and Anglo American lost 0.53 percent.

Volvo surged 7.62 percent in Stockholm after its first-quarter net profit beat forecasts.

Ericsson fell 2.62 percent after posting a wider-than-expected operating loss in the first quarter.

Novartis increased 2.16 percent in Zurich despite the company reporting a drop in first-quarter earnings, mainly due to a net charge related to the discontinuation of an acute heart failure drug.

Lonza Group climbed 4.10 percent after upgrading its outlook for 2017.

Chipmaker AMS soared 19.56…

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