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Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt April 24, 2017. — Reuters pic
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BERLIN, April 20 — European shares rose today after a few positive earnings reports lifted sentiment, while worries over the Ukraine war, slowing growth and rising yields kept gains in check.
The pan-European STOXX 600 ticked up 0.4 per cent after shedding 0.8 per cent in the previous session as European and US bond yields surged yesterday on expectations of tighter monetary policy. Banks and food & beverage stocks rose 1.6 per cent and 1.4 per cent, respectively.
ASML Holding NV, a key supplier to computer chip makers, climbed 4.4 per cent following a first-quarter sales beat, boosting tech shares.
Danone jumped 7.4 per cent after the French food group posted stronger quarterly sales growth and maintained its 2022 targets, while Heineken NV rose 4.2 per cent on a sharper rise in quarterly beer sales as bars reopened, allowing the firm to also stick to its 2022 forecast.
Commodity-linked mining and oil stocks fell 1.1 per cent and 0.4 per cent, respectively.
Rio Tinto fell 2.6 per cent after reporting lower iron ore shipments in the first quarter and warning of risks from inflation, China’s pandemic-related lockdowns and the Ukraine war. Read full story
“Despite the risk rebound, headwinds are likely to prevail in the short term, as lingering risks of a war escalation and sanctions are augmented by tougher central banks and increased signs of slowdown,” said Michele Morganti, equity strategist at Generali Investments.
The STOXX 600 has declined 6 per cent on the year so far, with cyclical bank shares and financial services down 5 per cent and 10 per cent, respectively.
Credit Suisse fell 1.7 per cent after the Swiss bank said it expects a first-quarter net loss and higher negative impacts from Russia’s invasion of Ukraine.
Siemens Gamesa slipped 1.4 per cent after posting a quarterly loss, while parent Siemens Energy dropped 4.5 per cent after saying it also had to review its annual forecast.
Food delivery company Just Eat Takeaway.com firmed 2.9 per cent after saying it is in talks for a possible sale of its US arm Grubhub and reported quarterly results.
France’s CAC 40 gained 0.5 per cent, the most among regional peers, ahead of a key debate between presidential election candidates Emmanuel Macron and Marine Le Pen before Sunday’s runoff vote.
Elsewhere in the region, German producer prices rose 30.9 per cent on the year in March, reflecting the effects of the Ukraine conflict for the first time. — Reuters