EUROPE MARKETS: European Stocks End Choppy Session In Positive Territory
25 Juli 2016 - 6:22PM
Dow Jones News
By Carla Mozee and Sara Sjolin, MarketWatch
German business confidence slips less than expected
European stocks ended a volatile session with small gains as
optimism over upbeat earnings and deal-related news outweighed a
slump in oil prices.
The Stoxx Europe 600 rose 0.2% to settle at 340.93, posting its
first rise in three sessions.
The pan-European benchmark traded as low as 339.79 during
Monday's action as losses for crude-oil futures accelerated to 2.4%
in the afternoon, sending the contract to $43.14 a barrel. That in
turn weighed on Europe's major oil companies, with shares of Royal
Dutch Shell PLC (RDSB.LN) (RDSB.LN) down 2.5%, Total SA (TOT)(TOT)
off 1.9% and Eni SpA (ENI.MI) 1.4% lower.
Earnings season: Morgan Stanley on Monday said that this week
will be the busiest of the European second-quarter earnings season,
with results due from 205 companies.
After having already tracked reports from 130 companies, "we've
seen 35% of companies beat consensus estimates by 5% or more, with
28% missing, giving a net beat of 8% of companies. This is
fractionally more positive than we saw in [first quarter] results,
where we saw a net beat of 6% of companies," wrote analyst Matthew
Garman in a note.
Read:Wall Street braces for feeding frenzy of earnings, central
bank action
(http://www.marketwatch.com/story/wall-street-braces-for-feeding-frenzy-of-earnings-central-bank-action-2016-07-23)
Advancers: Irish air carrier Ryanair Holdings PLC
(RYAAY)(RYAAY)was among Monday's top performers as shares soared
6.7%. The company backed its earnings target for the year
(http://www.marketwatch.com/story/ryanair-profit-up-4-sticks-with-forecasts-2016-07-25)
after a 4% rise in first-quarter profit.
Still, Ryanair said there are downside risks to watch during the
rest of the year, including the impact of the U.K.'s Brexit vote
(https://brexit.efinancialnews.com/ryanair-to-pivot-away-from-uk-in-face-of-brexit-uncertainty-edc4b173b595#.91fk8emw0)
which put the country on course to leave the European Union.
Meanwhile, British gaming company William Hill shares (WMH.LN)
climbed 4.9% as a consortium made up of gaming companies 888
Holdings PLC (888.LN) and Rank Group PLC (RNK.LN)said they're
considering a potential takeover offer
(http://www.marketwatch.com/story/888-rank-group-may-make-an-offer-for-william-hill-2016-07-25)
for the bookmaker.
Ericsson AB (ERIC) (ERIC) shares gained 1.5% as the Swedish
telecom-equipment maker said Hans Vestberg is stepping down as
chief executive
(http://www.marketwatch.com/story/ericsson-chief-departs-after-profit-plunge-2016-07-25-24854236),
effective immediately. This month, Ericsson posted a 24% drop in
second-quarter profit and announced further cost-cutting
measures.
Other movers: On the downside, shares of Italy's Banca Monte dei
Paschi di Siena SpA (BMPS.MI) fell 8.4% amid reports the
beleaguered bank will be asked to raise more capital in the
European Banking Authority's stress test due Friday night. Italy's
finance minister said this weekend that investors are considering a
rescue of Italy's embattled banks
(http://www.marketwatch.com/story/italian-investors-mulling-a-rescue-of-nations-struggling-banks-2016-07-25).
Shares of LVMH Moët Hennessy Louis Vuitton SE (LVMUY) rose 1.5%
as the luxury fashion house said it plans to sell Donna Karan
International Inc
(http://www.marketwatch.com/story/g-iii-to-buy-donna-karan-international-from-lvmh-for-650-million-2016-07-25).
to G-III Apparel Group Ltd. (GIII) in a $650 million deal.
Indexes: Germany's DAX 30 rose 0.5% to 10,198.24 and France's
CAC 40 added 0.2% to 4,388. The U.K's FTSE 100 dropped 0.3% to
6,710.13, weighed by the index's banks
(http://www.marketwatch.com/story/ftse-100-clings-to-thin-gain-as-banks-drift-lower-2016-07-25).
Italy's FTSE MIB closed down 0.5% at 16,692.17 and Spain's IBEX
35 lost 0.3% to 8,575.70.
The euro was buying $1.0980, compared with $1.0976 on
Friday.
Data: The closely watched Ifo business sentiment survey in
Germany showed a decline in the index in July, but by less than
anticipated
(http://www.marketwatch.com/story/german-ifo-business-sentiment-declines-in-july-2016-07-25).
The Ifo business climate index fell to 108.3 from 108.7 in June.
Economists polled by The Wall Street Journal had expected a reading
of 107.5. It was the first Ifo reading since the U.K.'s June 23
Brexit vote.
(END) Dow Jones Newswires
July 25, 2016 12:07 ET (16:07 GMT)
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