EUROPE MARKETS: European Stocks Edge Up As Earnings Reports Roll In

By Carla Mozee, MarketWatch

Most European stock benchmarks moved modestly higher Thursday, led by gains for commodity and industrial shares, as investors waded through a pile of corporate earnings reports.

What indexes are doing

On the national indexes, France's CAC 40 index rose 0.2% to 5,388.44, and the U.K.'s FTSE 100 index picked up 0.2% to 7,333.71 (http://www.marketwatch.com/story/uk-stocks-climb-to-10-week-high-as-metals-prices-soar-2018-04-19). Spain's IBEX 35 was up 0.2% to 9,876.40.

But Germany's DAX 30 index was off 0.2% at 12,566.94, with shares of lender Deutsche Bank AG losing ground.

Overall, the Stoxx Europe 600 index was up less than 1 point at 381.87. That benchmark on Wednesday rose 0.3% (http://www.marketwatch.com/story/european-stocks-head-higher-as-earnings-take-center-stage-2018-04-18), marking a second straight advance.

The euro changed hands at $1.2387, up from $1.2376 on Tuesday.

What's driving the market

Industrial and commodity shares were putting in the best performances in European trade, with oil shares rising as oil and Brent crude prices each gained about 1%. The Stoxx Europe 600 Industrial Goods and Services Index moved up 0.6%, and the Basic Resources Index tacked on 0.4%.

Oil prices extended gains (http://www.marketwatch.com/story/oil-hovers-at-3-12-year-high-as-investors-look-ahead-to-opec-meeting-2018-04-19), trading at their highest since 2014, as supply data released Wednesday showed an unexpected drop in U.S. crude stockpiles. As well, traders are looking ahead to Friday's outcome of the joint Organization of the Petroleum Exporting Countries and non-OPEC ministerial monitoring committee meeting.

Meanwhile, concerns about U.S. sanctions on Moscow have lifted prices for metals, including aluminum and nickel, which on Wednesday rallied to a 3-year high (http://www.marketwatch.com/story/nickel-prices-rally-to-a-3-year-high-on-growing-concerns-over-us-sanctions-on-russia-2018-04-18).

What strategists are saying

An oil price rally has "lit a fire under resource stocks and commodity prices" after the Energy Information Administration said oil inventories fell by 1.1 million barrels, Accendo Markets said in a note Thursday.

"Saudi Arabia added further kindling to demand for crude by indicating it would be happy for oil prices to reach as high as $80-100 a barrel, indicating that the voluntary OPEC+ supply cap is set to extend further," wrote Accendo analysts Mike van Dulken and Artjom Hatsaturjants.

"White House indecision over a new round of Russia sanctions and Venezuela's ongoing economic woes added to the supply uncertainty," they said.

Which data are in focus?

U.K. retail sales missed forecasts, falling 1.2% month-on-month in March after cold weather last month kept shoppers home. Analysts had expected sales to decline by 0.4%, according to FactSet.

The pound dropped to $1.4187 after the report, after trading as high as $1.4220 earlier on Thursday.

Stocks in focus

In the industrials group, Schneider Electric SE (SU.FR) bulked up 2.2%. The French energy management company said it is now targeting the upper half of its 2018 organic growth objective.

Weir Group PLC shares (WEIR.LN) rose 5.6%. The London-listed engineering company said it's purchasing U.S.-based ESCO Corp. in a $1.05 billion deal (http://www.marketwatch.com/story/weir-to-buy-esco-in-105-billion-deal-2018-04-19) that Weir says will strengthen its mineral and oil-and-gas offerings.

Publicis Groupe SA shares (PUB.FR) were pushed up 5.3% as the advertising firm posted first-quarter organic revenue growth of 1.6% (http://www.marketwatch.com/story/publicis-revenue-falls-despite-n-america-growth-2018-04-19), compared with a contraction of 1.2% in the year-earlier period.

Deutsche Bank AG (DBK.XE)(DBK.XE) fell 0.6% after the lender said Chief Operating Officer Kim Hammonds will leave the company next month (http://www.marketwatch.com/story/deutsche-bank-coo-to-leave-as-shakeup-continues-2018-04-19), the latest executive to depart the embattled bank. Earlier this month, Deutsche Bank named Christian Sewing to replace John Cryan as CEO following weeks of management turmoil.

Unilever PLC shares (ULVR.LN) (ULVR.LN) were down 1.9% after the maker of Dove soap and other consumer products said first-quarter revenue fell 5.2% (http://www.marketwatch.com/story/unilever-to-launch-6-billion-share-buyback-2018-04-19) on adverse currency movements and the impact of disposals. The company also said it's starting a share buyback program of up to 6 billion euros ($7.43 billion).

(END) Dow Jones Newswires

April 19, 2018 05:13 ET (09:13 GMT)

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