EUROPE MARKETS: European Stocks Advance, Helped By Upbeat Earnings
July 19 2017 - 5:11AM
Dow Jones News
By Carla Mozee, MarketWatch
Akzo Nobel CEO resigns
European stocks rose Wednesday, carried by well-received
corporate earnings reports including from Swedish appliance maker
Electrolux AB, while a more than $4 billion deal drew Reckitt
Benckiser Group PLC shares higher .
The Stoxx Europe 600 gained 0.4% to 384.09, with only the
industrials group printing a small loss. The benchmark on Tuesday
slid 1.1%, its worst session since June 29, after the euro marched
up to a 14-month high.
Earnings wave: Attention on Wednesday swung to financial
results. Electrolux (ELUXY) shares sprang up 3.8%, the best session
since early May for the maker of washing machines, refrigerators
and other white goods. The company raised its growth forecast for
the North American market after solid demand from the region helped
lift second-quarter net profit by 21%
(http://www.marketwatch.com/story/electrolux-profit-up-21-on-cost-savings-2017-07-19)
.
Shares of ASML Holding NV (ASML.AE) (ASML.AE) leapt 4.3% as the
Dutch semiconductor company said second-quarter net income rose 3%
(http://www.marketwatch.com/story/asml-income-rises-3-to-resume-share-buybacks-2017-07-19)
from the previous quarter, and that it's resuming its share buyback
program.
Tele2 AB shares (TEL2-B.SK) picked up 5.1% after the Swedish
telecom operator raised forecast for EBITDA to a range of 6.2
billion kronor and 6.5 billion kronor. It previously expected 5.9
billion kronor and 6.5 billion kronor.
But decliners included Volvo AB (VOLV-B.SK) as shares fell 6%
even as the truck maker said truck orders jumped 22%
(http://www.marketwatch.com/story/volvo-profit-jumps-on-22-rise-in-truck-orders-2017-07-19)
in the second quarter, and that it's seen continued recovery in its
construction-equipment unit.
Assa Abloy AB (ASSA-B.SK) also lost ground, with shares of the
lock maker dropping 8.5%. "Sales in China fell once again, and
disappointingly they also continued to decrease in Brazil and in
the Middle East," said Chief Executive Johan Molin in statement,
adding that sales in North America are developing well.
Second-quarter sales climbed 8%.
In other developments, Reckitt Benckiser (RB.LN) shares bulked
up by 1.4% as the consumer products maker reached a deal to sell
its food division for $4.2 billion
(http://www.marketwatch.com/story/mccormick-to-pay-42b-for-reckitt-benckiser-unit-2017-07-19)
to U.S. spice seller McCormick & Co. (MKC) . McCormick plans to
integrate the RB Foods business -- which includes French's mustard
and Frank's RedHot hot sauce -- into its commercial and industrial
segments.
Dutch paint producer Akzo Nobel NV (AKZOY) said its chief
executive, Ton Büchner, has resigned for health reasons
(http://www.marketwatch.com/story/akzo-nobel-ceo-buchner-resigns-for-health-reasons-2017-07-19).
The unexpected move, however, shouldn't slow its plan to spin off
its chemicals business. Shares were fractionally higher.
Euro: The euro fetched $1.1524, down from $1.1555 late Tuesday
in New York. The euro on Tuesday leapt to a 14-month high above
$1.15 as the dollar slid. On Thursday, the European Central Bank
will release its latest policy decision.
ECB policy maker Francois Villeroy de Galhau on Wednesday said
in France
(http://www.reuters.com/article/us-ecb-policy-villeroy-idUSKBN1A40N7?il=0)
that loose monetary policy is still needed for the eurozone economy
although the central bank has helped push inflation toward its 2%
target.
Indexes: The exporter-heavy DAX 30 index was fractionally lower
at 12,427.94. The index on Tuesday dropped 1.3%, hurt in part as
the euro climbed.
France's CAC 40 index rose 0.1% to 5,180, and Spain's IBEX 35
fell 0.4% to 10,480.
The U.K.'s FTSE 100 was fractionally higher at 7,392.
(END) Dow Jones Newswires
July 19, 2017 04:56 ET (08:56 GMT)
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