3 de noviembre de 2016 / 10:32 / en 10 meses

European shares set to snap 8-day losing run on solid earnings

(ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets)

* STOXX Europe 600 index up 0.3 percent

* Set to end 8-day losing streak

* Banks among top gainers, SocGen surges

By Atul Prakash

LONDON, Nov 3 (Reuters) - European shares looked set to snap their longest losing streak in more than two years as good corporate results, particularly from euro zone banks, helped to lend support.

The market also got a lift after England's High Court ruled that the government required parliamentary approval to trigger the EU divorce process after Britons voted in June to leave the European Union. The ruling opens the possibility of parliament rejecting the divorce, although the government plans an appeal.

The STOXX Europe 600 rose 0.4 percent after hitting its lowest level in nearly four months earlier in the session. The pan-European index fell in the past sessions on growing nervousness before next week's U.S. presidential election.

Banks, among the most beaten down sectors in Europe this year, got support from the High Court ruling and after reassuring results from some top lenders.

Societe Generale helped banks to lead the broader market higher.

The French bank gained 5.7 percent after posting stronger-than-expected results as a recovery in foreign retail business and a bumper quarter for its trading operations helped the lender.

ING Groep advanced 4.5 percent after the largest Dutch bank reported a better-than-expected 22 percent jump in its underlying net result, which the company attributed to continued loan growth and higher commission and fee incomes.

"We have seen some surprisingly good earnings reports from banks. The sector is showing some initial signs of a turnaround in earnings growth and higher inflation, and interest rate expectations could help banks further going forward," said Christian Stocker, strategist at UniCredit.

"The broader stock market could stabilise around current levels as a lot of negative headlines from the U.S. election campaign seem to be priced in. However, a Trump victory could result in a fall of as much as 10 percent in European equities in one day just after the election results."

Investors generally view Democratic candidate Hillary Clinton as a known quantity, but there is deep uncertainty about what a win for Republican Donald Trump - who is closing the gap in some polls - might mean for U.S. economic policy, free trade and geopolitics.

Investors are unsettled by media reports that some agents at the FBI had wanted to press ahead with an investigation of the Clinton Foundation, the latest twist in a long-running investigation into Clinton's use of a private email server while she was Secretary of State.

Among other sharp movers, Credit Suisse fell 5.2 percent after results showed the Swiss bank lagged peers on trading revenues over the third quarter and raised its litigation provisions.

British satellite company Inmarsat rose more than 9 percent, the top STOXX 600 gainer, after reporting a 5.8 percent rise in third-quarter revenue, while Tate & Lyle gained 6.4 percent after raising its profit forecast.

Genmab jumped 9 percent in heavy volumes after the Danish biotech company's third-quarter operating profit surged 31 percent. It also raised its guidance due to increased royalty and milestone income related to sales of multiple myeloma drug Darzalex.

Editing by Keith Weir

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below