European Shares Rise On Optimism Over Earnings Growth

European shares extended recent gains on Tuesday as investors brushed aside trade worries and looked ahead to a strong quarterly earnings season.

The pan-European Stoxx Europe 600 index was up 0.2 percent at 385.42 in late opening deals, on track for its sixth straight session of gains.

The German DAX was marginally higher, France’s CAC 40 index was rising 0.3 percent and the U.K.’s FTSE 100 was up 0.1 percent.

German windpower group Nordex jumped 4.2 percent on bagging a 595 megawatt wind turbine order in Brazil.

Volkswagen dropped 1.3 percent after a U.S. appeals court upheld its $10.03 billion settlement with car owners caught up in the company’s emissions cheating scandal.

Petrofac rose over 2 percent in London. The oil and gas services company has received a contract valued around $200 million in total from TenneT, a Dutch-German transmission grid operator.

British social care services firm Cambian soared 34 percent after receiving a takeover approach from rival CareTech Holdings Plc.

Tesco dropped 1.2 percent as its U.K. chief executive, Charles Wilson, stepped down from the board following treatment for cancer.

Energy giant BP Plc advanced 0.8 percent, Tullow Oil jumped as much as 2 percent and Total SA rallied 1 percent as oil prices rose on concerns over potential supply shortages.

TP ICAP shares slumped 32 percent. The inter-dealer broker has fired Chief Executive Officer John Phizackerley amid mounting costs linked to Brexit.

On the data front, German investor confidence fell to its lowest level in nearly six years in July, as sentiment was hurt by political uncertainty, survey data from the Centre for European Economic Research showed.

The ZEW Indicator of Economic Sentiment for Germany dropped 8.6 points to minus 24.7 points, which was the lowest reading since August 2012.

France’s industrial production declined for the third straight month in May, defying economists’ forecast for an increase, the statistical office Insee showed.

Industrial output dropped a seasonally adjusted 0.2 percent sequentially, slower than the 0.5 percent fall in April.

U.K economic growth increased in May, led by services, while production declined, the first ever-monthly GDP estimate from ONS revealed.

GDP grew 0.3 percent month-on-month in May after the 0.2 percent increase in April and a flat reading in March.

Another report showed that U.K. industrial production decreased for the third straight month in May, defying economists’ forecast for an increase.

Industrial production fell 0.4 percent month-over-month in May, slower than April’s revised 1.0 percent decline.

by RTTNews Staff Writer

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