By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European equities advanced Tuesday, on
track for a second consecutive session of gains, as investors
assessed a fresh round of corporate financial results.
The Stoxx Europe 600 rose 1% to 337.46, adding to Monday's 0.2%
rise. That prior-day gain was fronted by a 14% rally in AstraZeneca
PLC , after Pfizer Inc. (PFE) renewed its interest in a takeover of
the drug maker. AstraZeneca shares on Tuesday eased by 0.3%.
But Deutsche Bank AG shares leapt 3.2%, helping lift the Stoxx
600, after the banking-sector heavyweight's first-quarter profit
came in above analyst expectations. The move also supported a 1.2%
climb in Germany's DAX index . The best advancer on the German
stock gauge was Infineon Technologjes AG , which rose 5.9%
following the chipmaker's better-than-expected second-quarter
results.
Infineon also forecast revenue growth and margin "to be at least
at the upper end" of previously set projections.
Also headed higher were key Russian stock indexes, brushing past
sanctions imposed on 15 more Russian and pro-Russian Ukrainian
figures by the European Union in response to escalating tensions
between Moscow and Kiev. The EU's list was released Tuesday. The
blue-chip Micex index rose 1.1%, and the RTS index gained 2.1%.
On Monday, the U.S. announced sanctions on seven Russian
government leaders and 17 companies linked to the "inner circle" of
Russian President Vladimir Putin.
The impact of the sanctions is "blunted" as they "target the
Russian elite, rather than the economy as a whole, suggesting that
the U.S. wants to limit the impact on U.S. and European
businesses," said Marshall Gittler, head of global FX strategy at
IronFX Global Ltd. in a note early Tuesday. "Thus the markets --
and President Putin too, one assumes -- see the lack of conviction
behind the effort and the desire on the part of the West to
minimize their own sacrifice on behalf of Ukraine."
Higher tensions between Moscow and Kiev could weaken economic
prospects for Europe's largest economy, a GfK German
consumer-confidence survey showed, though confidence in the economy
remains high.
Gainers in European markets also included Nokia Oyj , pushing up
5.6% higher as the mobile company said it will distribute more than
3 billion euros ($4.19 billion) to investors, using a significant
chunk of cash from the recent sale of its handset business to
Microsoft Corp. (MSFT) Also, the company's first-quarter loss
narrowed from the year-ago period.
On the downside, stock in ABB Ltd. slumped 6.8% after
first-quarter earnings and revenue at the power-and-technology
company fell short of projections by analysts.
In London, government-services provider Serco Group PLC warned
of a possible downward revision to its expectations, which was
followed by a 20% slide in shares.
Also in the U.K., the FTSE 100 index rose 0.8% to 6,756.17. Data
released Tuesday by the Office for National Statistics showed the
U.K.'s gross domestic product grew by 0.8% in the first quarter,
missing analysts' and the Bank of England's estimates.
In France, CAC 40 turned up 0.7% to 4,489.20.
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