- STOXX 600 index subdued
- Phillips jumps to better-than-expected results
- Software AG takeover bid explodes
April 24 (Reuters) – European stocks were subdued on Monday as investors await more economic data and earnings from some of the highest-rated US companies as well as major European banks and consumer companies this week.
The pan-European STOXX 600 index (.STOXX) was flat as of 0825 GMT, with oil & gas stocks (.SXEP) falling the most, down 0.5%, trailing oil prices, while financial services (.SXFP) were up 0.7% .
Healthcare stocks (.SXDP) rose 0.3%, led by Philips NV (PHG.AS), which rose 12.3% after the Dutch healthcare technology group posted better-than-expected first-quarter results.
Investors will be keeping a close eye on the results of some of the largest US companies this week, including Microsoft Corp (MSFT.O), Google parent Alphabet Inc (GOOGL.O) and Amazon.com Inc (AMZN.O).
At home, major banks Barclays Plc (BARC.L), Santander (SAN.MC), Deutsche Bank AG (DBKGn.DE), UBS Group AG (UBSG.S) and consumer companies such as Nestle SA (NESN.S), Reckitt (RKT .L) and Unilever Plc (ULVR.L) report results this week.
“On the one hand there are worries about recessions, slumps in consumer spending and higher interest rates pulling growth out of the economy. On the other hand, we have a more resilient economy than expected,” said James Baxter, founder of Tideway Fortune.
“It’s quite a mixed bag at the moment. We have a lot of revenue ahead of us, after that we’ll get better controls.”
European equities enjoyed a healthy run last month as fears of a banking crisis eased and companies reported better than expected results. However, uncertainty about the interest rate outlook continues to increase concerns about equities.
German business morale rose in April, contributing to positive signs, according to a survey, as Europe’s largest economy hopes to have escaped a winter recession.
Commentary from European Central Bank (ECB) policymakers Fabio Panetta and Francois Villeroy de Galhau will be closely followed for further clues on the ECB’s monetary tightening path, along with the euro-zone flash estimates for April GDP growth.
According to a Reuters survey, euro-zone GDP is expected to grow at a slower pace in the March quarter compared to the same period last year, while quarterly growth will pick up slightly.
Software AG (SOWGn.DE) shares soared 49.9% after private equity firm Silver Lake offered to buy the German software developer.
Britain’s Medica Group (MGPM.L) also rose 32.5% after the telemedicine services company recommended a takeover bid by private equity firm IK Investment.
Sweden’s Avanza (AVANZ.ST) fell 7.8% as the financial services provider missed first-quarter earnings expectations.
Frankfurt-listed Bed Bath & Beyond Inc. (BBBY.O) shares fell 34.6% after the US home goods retailer filed for bankruptcy protection.
(This story has been refiled to add an omitted word in paragraph 6 and say in paragraph 7 “Get Better Controls,” not “Give Better Controls.”)
Reporting from Shubham Batra in Bengaluru; Editing by Varun HK
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