Europe finishes on a high note as strong earnings give stocks a boost

  • The pan-European STOXX 600 closed the session up 0.8 percent provisionally, with almost all sectors ending in the black.
  • Genmab surged to the top of the index after reporting higher than expected sales of the drug Darzalex in the first quarter.
  • Global investor confidence appeared to improve on Tuesday following speculation joint missile strikes by Western powers into Syria would not lead to a prolonged offensive.

European markets finished Tuesday's session on a positive note, as investors digested the latest news coming out of the corporate space.

Symbol
Name
Price
 
Change
%Change
Volume
FTSE
---
DAX
---
CAC
---

The pan-European STOXX 600 closed the session up 0.8 percent provisionally, with almost all sectors ending in the black.

Across the board, major bourses finished higher, with Germany's DAX soaring 1.57 percent, while the U.K.'s FTSE 100 popped 0.39 percent and France's CAC 40 rose 0.76 percent.

Markets in the region received a boost in afternoon trade from a strong start to Wall Street's session, where the Dow soared 250 points around Europe's close. Markets in Asia closed in the red.

Genmab shares soar

Basic resources stocks — with their heavy exposure to China — were among the top performing sectors Tuesday, jumping 1.3 percent following robust GDP data from Beijing. The economy grew at 6.8 percent during the first three months of 2018, topping expectations. Polymetal, ArcelorMittal and Anglo American were among those leading the sectoral gains, all closing up 2 percent or more.

Household goods, however, ended Tuesday in the red, the only sector to do so. Drug giant Reckitt Benckiser slumped towards the bottom of the European benchmark, off 3.2 percent, after Credit Suisse downgraded its rating on the stock to "underperform" from "neutral."

Looking at individual stocks, Genmab surged to the top of the index after reporting higher than expected sales of the drug Darzalex in the first quarter. Shares of Genmab jumped 8.74 percent by the close.

Sweden's Intrum Justitia soared 8 percent after it reportedly filed a binding bid for Intesa Sanpaolo's debt collection unit. The deal, which is set to be reviewed by the Italian bank on Tuesday, could rid the lender of around $13 billion of bad debt. Shares of the Italian lender closed up almost 1 percent.

Elsewhere, Associated British Foods rose over 4 percent after reporting its latest earnings, which saw the company maintain its full-year outlook.

Economic data

Global investor confidence appeared to improve on Tuesday following speculation joint missile strikes by Western powers into Syria would not lead to a prolonged offensive. On Saturday, the U.S., U.K. and France launched more than 100 missiles targeting Syrian government sites in a response to a likely poison gas attack in the country earlier this month.

On the data front, a survey showed the mood among German investors collapsed in April, reflecting the escalating unease about Europe's largest economy potentially finding itself vulnerable to an ongoing trade dispute between the U.S. and China.

Germany's ZEW research institute said its monthly survey found economic sentiment among investors slumped for the third straight month to -8.2 — the lowest level since November 2012.

In currency news, on Tuesday Britain's sterling reached its highest level since the country voted to leave the European Union in June 2016. During the session, sterling rose as high as $1.4376, before settling down at $1.4301 at Europe's close.

Vote
Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.