Thursday, 25 July 2024

European stocks steady amid mixed earnings


There was little change in European stocks in early trading on Wednesday, as gains in technology companies’ stocks offset bank losses, with investors assessing the impact of monetary tightening on companies’ performance and financial results.

According to Reuters, the European Stoxx 600 index rose slightly by 0.1% by 0720 GMT and hovered around the highest level in a week, with the technology sector rising 2.4%.

Shares of technology companies received support after ASM International raised its second-quarter profit expectations and attributed this to stronger-than-expected demand from China and higher sales of some products, which pushed the company’s shares to rise 12.2%.

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However, a 0.9 percent decline in the banking sector in the euro zone limited the gains, under pressure from a 9.6 percent decline in the Swedish Handelsbanken stock after it announced net profits in the first quarter that were less than market expectations due to higher expenses.

Stokes also faced downward pressure due to a 2.3 percent decline in Swiss pharmaceutical company Roche after a 6 percent decline in sales in the first quarter. Kering shares also fell 9.3% after the luxury goods manufacturer said it expects a decline between 40 and 45% in operating profits for the first half.