EUROPE MARKETS: European Stocks Close Higher As French Shares Pop; Deutsche Bank Falls

By Carla Mozee and Victor Reklaitis, MarketWatch

LVMH, Peugeot leap

European stocks finished higher Wednesday, with surges in shares of French firms LVMH Moët Hennessy Louis Vuitton and Peugeot SA helping to offset a drop in Deutsche Bank AG shares after the German lender's profit plunged.

The Stoxx Europe 600 rose 0.4% to end at 342.74.

The Federal Reserve after the close of European trade Wednesday is widely expected to leave interest rates steady (http://www.marketwatch.com/story/why-the-fed-wont-hike-rates-despite-having-its-ducks-in-a-row-2016-07-26). Meanwhile, there were reports that Japanese Prime Shinzo Abe plans to introduce an economic stimulus plan (http://www.wsj.com/articles/japan-govt-mulling-issuance-of-50-year-debt-sources-1469589748) worth more than Yen28 trillion yen next week. The Bank of Japan will issue its monetary policy decision on Friday.

While investors wait for firm word from those global monetary and fiscal fronts, the corporate earnings season has picked up pace.

Among top gainers Wednesday, shares of French luxury-goods maker LVMH Moët Hennessy Louis Vuitton (LVMUY) jumped 7.5%. Late Tuesday, LVMH posted growth in sales in the first half of the year (http://www.marketwatch.com/story/lvmh-profit-was-flat-in-first-half-2016-07-26-134854025). Profit of EUR2.96 billion ($3.25 billion), however, was flat compared with a year ago.

Peugeot SA shares (UG.FR) spiked higher by 9.3% as the French car maker's first-half net profit more than doubled (http://www.marketwatch.com/story/peugeot-profit-doubles-on-year-after-cost-cuts-2016-07-27) to EUR1.2 billion ($1.32 billion), aided by reduced costs stemming from restructuring charges, taxes and debt.

The rally in those shares helped propel France's CAC 40 index up by 1.2% to 4,446.96.

European decliners included Deutsche Bank (DBK.XE) (DBK.XE), which dropped 3.2%. The bank's second-quarter net income slid 98% (http://www.marketwatch.com/story/deutsche-bank-profit-tumbles-98-2016-07-27) to EUR20 million ($22 million) from the same period last year, dented by weaker performances in trading, investment banking and other core areas. That profit result did come in ahead of average net-income consensus estimates.

Other key indexes: Germany's DAX 30 still held to higher ground, rising 0.7% to 10,319.55.

The U.K's FTSE 100 picked up 0.4% to 6,750.43 (http://www.marketwatch.com/story/ftse-100-gets-a-boost-as-earnings-reports-roll-in-2016-07-27), with shares of broadcaster ITV PLC (ITV.LN) closing up nearly 8% and helping the British benchmark nab a fresh 2016 closing high.

The euro was roughly unchanged, buying $1.0987 compared with $1.0989 late Tuesday.

(END) Dow Jones Newswires

July 27, 2016 12:21 ET (16:21 GMT)

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