Basic resource, oil stock rally drives European share rise
15/03/2017 10:28
* STOXX 600 up 0.2 pct
* Zodiac plummets on another profit warning
* Swedish fashion retailer H&M down on sales miss
* German utility E.ON drops after 16 bln euro loss
(Updates prices)
By Helen Reid
LONDON, March 15 (Reuters) - European shares rose on
Wednesday, boosted by basic resource and oil stocks, while
French aeroplane seat-maker Zodiac fell more than 13 percent
after its latest profit warning.
The pan-European STOXX 600 .STOXX index gained 0.2 percent
in early trading, with the market focused on potentially
divisive elections in the Netherlands and a U.S. Federal Reserve
policy meeting that could signal how much monetary tightening to
expect during the remainder of the year.
A recovery in oil prices after a surprise U.S. crude
stockpile drawdown eased worries about a supply glut spurred a
rally in basic resources stocks with the sector .SXPP up 2
percent, followed by major European oil-related stocks .SXEP
which rose 1.3 percent. urn:newsml:reuters.com:*:nL3N1GS05W
Rio Tinto RIO.L and Glencore GLEN.L were among the top
gainers, with their shares up 2.3 to 2.7 percent.
British drugmaker Hikma HIK.L was up 7.7 percent after it
posted a 2.4 percent rise in full-year operating profit on
growth in its injectables and branded business, which offset
weakness in its generic drugs.
Finnish stainless steel producer Outokumpu OUT1V.HE was up
4.6 percent, set for its best day in six weeks, after the
European benchmark price for ferrochrome, a crucial raw material
for steel production, was set lower than expected. urn:newsml:reuters.com:*:nL5N1GS22M
Zodiac ZODC.PA was the biggest European faller, after it
warned on profit after the close on Tuesday. The company, which
engine maker Safran is seeking to acquire, said it sees
full-year operating income falling 10 percent against a previous
forecast of a 10-20 percent rise. urn:newsml:reuters.com:*:nL5N1GR6AA
Swedish fashion retailer H&M HMb.ST was among the biggest
fallers, with its shares down 4.8 percent after it posted its
first monthly sales drop in four years. urn:newsml:reuters.com:*:nL5N1GS1F3
The Europe-wide retail sector index .SXRP was the
worst-performing, down 0.6 percent, with Zara owner Inditex
ITX.MC also down 1.3 percent after it posted a 10 percent rise
in profit for 2016.
German utility E.ON < EONGn.DE> fell 3.6 percent after it
posted a record 16 billion euro ($17 billion) loss due to
impairments on its former power plant unit Uniper UN01.DE
which it spun off last year. urn:newsml:reuters.com:*:nL5N1GS0WI
(Editing by Vikram Subhedar and Alexander Smith)
((Helen.Reid@thomsonreuters.com; +44 20 7542 7748;))
Keywords: EUROPE STOCKS/