Stocks

Upbeat earnings reports lift European shares

Reuters May 12 | Updated on May 12, 2020 Published on May 12, 2020

The pan-European STOXX 600 index rose 0.4 per cent in early trade   -  Bloomberg

European shares edged higher on Tuesday following a clutch of upbeat quarterly earnings reports, but investors remained cautious of a resurgence in new coronavirus cases as hard-hit economies lift lockdowns.

The pan-European STOXX 600 index rose 0.4 per cent by 0726 GMT, with still gains led by telecoms, healthcare and utilities - sectors that investors seek during times of economic uncertainty.

Boosting UK's FTSE 100, Vodafone's shares jumped 3.9 per cent after the world's second-largest mobile operator met expectations with a 2.6 per cent rise in full-year core earnings and maintained its full-year dividend payout.

German broadcaster ProSiebenSat.1 Media surged 10.2 per cent to the top of STOXX 600 after US private equity house KKR revealed that it had acquired a stake of 5.2 per cent in the struggling company.

Gains in Europe followed a risk-averse mood in Asian trading hours after the Chinese city of Wuhan, where the pandemic originated, reported its first new cases since its lockdown was lifted.

Published on May 12, 2020
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