Banks and earnings power European shares
LONDON: European shares rose in early trade on Wednesday as French lender Credit Agricole led banking stocks higher and earnings provided a boost.
The pan-European STOXX 600 index was up 0.3 per cent in early trade with the European banking index the top-gaining sector, up 1.2 per cent.
Shares in Credit Agricole jumped 3.2 per cent after France's biggest retail bank beat forecasts with a smaller than expected earnings drop in the fourth quarter.
Banking stocks were also helped by hawkish rhetoric from US Federal Reserve Chair Janet Yellen on Tuesday, who said that the Federal Reserve will likely need to raise interest rates at an upcoming meeting. Low interest rates put pressure on banks' margins, as has been the case in Europe.
Earnings also fuelled the move higher, with Finnish packaging maker Huhtamaki rising 7 per cent after reporting results, the top gainer on the STOXX 600 index, and brewer Heineken also rallying 3.6 per cent after confirming its margin target.
Among the biggest fallers, insurer Ageas, medical equipment firm Gerresheimer and paints and coatings company Akzo Nobel were all weaker after reporting results.
The pan-European STOXX 600 index was up 0.3 per cent in early trade with the European banking index the top-gaining sector, up 1.2 per cent.
Shares in Credit Agricole jumped 3.2 per cent after France's biggest retail bank beat forecasts with a smaller than expected earnings drop in the fourth quarter.
Banking stocks were also helped by hawkish rhetoric from US Federal Reserve Chair Janet Yellen on Tuesday, who said that the Federal Reserve will likely need to raise interest rates at an upcoming meeting. Low interest rates put pressure on banks' margins, as has been the case in Europe.
Earnings also fuelled the move higher, with Finnish packaging maker Huhtamaki rising 7 per cent after reporting results, the top gainer on the STOXX 600 index, and brewer Heineken also rallying 3.6 per cent after confirming its margin target.
Among the biggest fallers, insurer Ageas, medical equipment firm Gerresheimer and paints and coatings company Akzo Nobel were all weaker after reporting results.
