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.

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Published on May 12, 2020
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