European Stocks Rise as Gold Stocks Like Glencore, Anglo American Jump
Frankfurt (Feb 17) European stocks rose on Wednesday as investors cheered better-than-expected earnings from companies including Crédit Agricole (CRARY) and Schneider Electric (SBGSY) .
In London, the FTSE 100 was up 1.45% at 5,947.13, while in Paris the CAC 40 climbed 2.09% to 4,196.59. In Frankfurt, the DAX added 1.90% to 9,308.58.
S&P 500 futures were up 0.73% to 1,902.50. Later in the day U.S. data on January housing starts, producer prices and industrial production, along with minutes from the most recent Federal Reserve monetary-policy gathering will be released.
In the U.K., the latest labor report from the Office for National Statistics showed a 5.1% unemployment rate in the fourth quarter, down from 5.7% a year earlier, as average weekly earnings increased by 1.9% including bonuses and 2% excluding bonuses.
Positive corporate news boosted several stocks across the region.
In London, Glencore (GLNCY) rose more than 11% after the Swiss commodities giant announced that it has signed a new revolving credit facility to ultimately refinance and replace its existing $8.45 billion facility.
Anglo American (AAUKF) was also up, recovering from Tuesday's losses despite more bad ratings news. On Wednesday, Fitch cut the company's long-term credit rating to junk, a day after Moody's Investors Service downgraded its bonds to junk status. The stock was up 5.74% in London.
AstraZeneca (AZN - Get Report) rose 1.5% after the drugmaker announced that its bladder cancer drug durvalumab was granted breakthrough therapy designation by the U.S. Food and Drug Administration.
In Paris, Crédit Agricole soared more than 12%. The lender announced plans to sell back stakes in more than three dozen regional lenders in a €18 billion transaction designed to simplify its corporate structure and shore up capital.
It also posted a 28% rise in fourth-quarter net income to €882 million, and said it will propose a dividend of €0.60 a share for 2015, to be followed by an all-cash dividend for 2016 made possible by the new restructuring measures.
Schneider Electric climbed 8.83% as investors welcomed a higher dividend, better-than-expected results, and a €1.5 billion share buyback plan in 2015-2016, reportedly at the high end of a range set a year ago.
And in Oslo, Marine Harvest (MHG) , the world's largest salmon farmer, added 3.73% as investors welcomed better-than-expected fourth-quarter results, including a record for its fish feed division.
Among decliners, ABN Amro was trading 0.65% lower in Amsterdam on weaker-than-expected quarterly results, mainly impacted by negative one-off items like money set aside for legal claims. Fourth-quarter operating income was 4% lower than a year earlier.
In Frankfurt, RWE slumped more than 14% after the German power utility said it will suspend payments on its 2015 dividend payments on its common shares following its first full-year loss since 2013.
Beiersdorf retreated 1.34%. The maker of Nivea skin-care products and Hansaplast bandages said it expects group sales to grow by 3% to 4% in 2016, with the operating margin seen "slightly" higher than last year. The fourth-quarter operating result amounted to €962 million, 12% higher than a year ago.
And in Paris, ballpoint pen maker Société BIC erased nearly 12% amid a management reshuffle that will see its CEO retire and the current chairman taking on that role as well. It also said it expects net sales to grow in the mid-single digits in 2016, and announced a review of strategic alternatives for its BIC Graphic division that makes custom-imprinted items for the promotional products industry.
In Asia, Hong Kong's Hang Seng closed 1.03% lower, while the Nikkei slid 1.36% to 15,836.36 in Tokyo.
Source: TheStreet
