European shares rise off 7-week low as telecoms earnings impress
14/11/2017 08:35
LONDON, Nov 14 (Reuters) - Encouraging earnings from
telecoms companies put European shares on the front foot on
Tuesday, helping them recover from a seven-week low hit in the
previous session.
The pan-European STOXX 600 .STOXX was up 0.2 percent by
0720 GMT, also helped by gains in British retailer Tesco
TESO.L after the UK regulator approved its $4.9 billion
takeover of wholesaler Booker BOK.L .
Telecom and tech sector strength helped German and French
benchmarks gain 0.4 percent, while euro zone blue-chips
.STOXX50E were up 0.3 percent.
German telecoms firm Drillisch DRIG.DE was up 3.7 percent
after it reported a 9.9 percent rise in nine-month revenues.
Vodafone VOD.L was another standout stock in the sector,
rising 4 percent after upping forecasts for full-year earnings
growth after a strong first half. urn:newsml:reuters.com:*:nASM000FYV urn:newsml:reuters.com:*:nL8N1NK1ND
Altice ATCA.AS bucked the sector trend, sinking 7.2
percent after Morgan Stanley cut its price target on the stock
by 34 percent, adding to pressure on the shares which are
already down 46 percent this year. urn:newsml:reuters.com:*:nP6N1MT01P
Britain's biggest retailer Tesco TSCO.L jumped 4.8 percent
after receiving regulatory approval for its takeover of Booker.
The latter's shares also rose 4.9 percent.
Stronger than expected results also boosted Simcorp SIM.CO
and Alstom ALSO.PA , while asset manager Intermediate Capital
Group ICP.L soared 10.5 percent to the top of the STOXX index
after reporting record inflows. urn:newsml:reuters.com:*:nL8N1NK20B
This earnings season has delivered surprisingly violent
share price moves stocks after results, Goldman Sachs
strategists said.
Earnings-day price moves have been more than 3.5 times the
average daily move - the most extreme results reactions the bank
had data for.
As the earnings season neared its end, MSCI euro zone
companies were tracking 9.9 percent year-on-year earnings growth
in U.S. dollar terms, and 62 percent of companies in the euro
zone index had beaten or met earnings estimates.
(Reporting by Helen Reid; editing by Sujata Rao)
((Helen.Reid@thomsonreuters.com; +44 20 7542 0402;))
Keywords: EUROPE STOCKS/