EUROPE MARKETS: Earnings Help Europe Stocks Rebound, With Vodafone And Vivendi Rallying
July 26 2019 - 11:21AM
Dow Jones News
By Steve Goldstein, MarketWatch
Well-received earnings on both sides of the Atlantic drove a
gain in European stocks on Friday, helping to rebound from a rough
session.
After ending Thursday with its biggest percentage decline in
about three weeks, the Stoxx Europe 600 rose 0.3% to 390.76.
The U.K. FTSE 100 added 0.8% to 7,547.09, the French CAC 40 rose
0.5% to 5,607.91, and the German DAX rose 0.4% to 12,408.52.
"The move up in equities in the first half was largely driven by
interest rates but there are tentative signs that growth
expectations are bottoming out: this week, while macro data have
been weak and the earnings season mild, sentiment has improved
towards some selected cyclicals," said strategists at Goldman
Sachs.
What's moving markets
Earnings beats for Google owner Alphabet and Intel helped lift
U.S. stocks on Friday, with second-quarter GDP data coming in
slightly ahead of forecasts.
The cloud over the lack of consensus at the European Central
Bank lingered over markets, though most expect Mario Draghi to push
through interest-rate cuts before he hands the baton to Christine
Lagarde who takes over as president of the ECB. "We think Draghi
will use his last two press conferences ... to push through some
easing and pave the way for Christine Lagarde toward a potential
sovereign QE program, if it becomes necessary," said Ricardo
Garcia, chief economist for the eurozone for the UBS Chief
Investment Office.
After Thursday's wild ride, the euro traded at $1.1124, vs.
$1.1149. The Trump administration has ruled out intervening in
currency markets, White House National Economic Council Director
Larry Kudlow told CNBC on Friday.
Focus stocks
Vodafone Group (VOD.LN) (VOD.LN) shares jumped over 9% as the
mobile phone giant set out plans to separate its European tower
infrastructure business
(http://www.marketwatch.com/story/vodafone-to-split-off-europe-tower-unit-2019-07-26),
possibly by an initial public offering. It also reported a slight
decline in fiscal first-quarter revenue and confirmed its earnings
guidance.
Vivendi (VIV.FR) shares gained 5% as the French media
conglomerate reported an operating profit rise of 28% on a 7% gain
in comparable revenue in the first half. Universal Music Group
drove Vivendi's profitability, on new releases from Ariana Grande,
Billie Eilish and the Japanese band King & Prince, as well as
continued sales of the soundtrack from A Star is Born and albums
from Queen.
Pearson (PSON.LN) shares rose 5%, as the educational publisher
lifted its adjusted earnings per share guidance for the year
(http://www.marketwatch.com/story/pearson-lifts-guidance-for-the-year-2019-07-26),
helped by lower finance charges and taxes than anticipated and
sales growth at its online degree program unit.
Nestle shares (NESN.EB) rose 2.1% as pet-care sales and the
launch of Starbucks products in 14 markets helped drive what it
calls underlying EPS by 15% in the first half and comparable sales
by 3.6%
(http://www.marketwatch.com/story/nestle-backs-2019-view-helped-by-starbucks-deal-2019-07-26).
(END) Dow Jones Newswires
July 26, 2019 11:06 ET (15:06 GMT)
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