European stocks up as earnings boost investors mood
European stocks went up on Wednesday, boosted by positive earnings report from the British bank Barclays and luxury group Kering that prompted investors to overlook concerns about China’s regulatory crackdown that has kept markets on edge this week.
The pan-European STOXX 600 inched up 0.4%, recovering from two sessions of declines.
In the UK, Barclays rose 4.1% following its announcement of the resumption of payouts after beating first-half profit expectations. Meanwhile, in Germany, Deutsche Bank also made gains after its better-than-expected quarterly profit.
Going over to France, luxury group Kering climbed up 3.8%, while Capgemini gained 3.3%.
Meanwhile, Hungarian airline Wizz Air soared up 5.0% as the company forecast capacity to increase between 90% and 100% of pre-pandemic levels in the months of July and August. Other airlines, such as the UK’s easyJet and British Airways-operator IAG have also reported gains.
However, ASM International, the Dutch semiconductor supplier, experienced a 1.1% loss as its forecast for revenue growth in the coming quarters failed to meet analysts’ estimates.
In a Refinitiv IBES estimate, analysts expect companies listed in the STOXX 600 to have profit growth of 120.8% in the second quarter against the 115.2% forecast in the previous week.