European Markets Shrug Off Fed; Earnings Prop Up Indices

Frankfurt (July 28)  European markets opened lower this morning as the benchmark indices absorbed the Federal Reserve's decision to keep rates steady in the wake of the U.K.'s vote to leave the European Union in June.

The central bank did however hint that the economy was gaining strength and that a rate increase could be imminent. The Federal Open Market Committee said that improved hiring conditions and strong consumption have eased short-term economic worries.

A deluge of company earnings helped prop up markets, which parred earlier loses.

In London, the FTSE 100 was recently up 0.12% at 6,758.40

Rolls Royce (RYCEY) surged in early morning trading and was recently up more than 7% after it beat analyst's expectations reporting a slight profit in the first half.

The engine maker's pre-tax profit fell 76% to £104 million ($115.5 million) in the first half of the year, underlying revenues fell 1.8% to £6.14 billion, ahead of forecasts of £6.12 billion.

CEO Warren East said, "In the first half of 2016 Rolls-Royce performed broadly in line with expectations, delivering a result a little better than breakeven; and the outlook for the rest of the year remains unchanged."

Anglo American (NGLOY) was up more than 6% after said it was on track to reduce debt by £10 billion by the end of the year. Debt currently sits at £11.7 billion. The miner narrowed its loss in the first half.

Shell (RDS.A) has fallen more than 3% in morning trading after second-quarter results were worse than expected due to low oil prices.

Source: TheStreet