Europe: Shares lifted by positive earnings reports

[BENGALURU] European shares rose on Wednesday, as a batch of positive earnings reports and the huge quantities of stimulus coursing through the financial system again overshadowed concerns about the surge in coronavirus cases in Europe and the United States.

The pan-European Stoxx 600 index rose 0.7 per cent by 7.11am GMT, with the oil and gas index leading gains after BP extended gains for a second day.

Ahold Delhaize, a major operator of supermarket chains in the United States and Europe, jumped 5 per cent as it raised its sales outlook for 2020 after coronavirus lockdowns drove more traffic through its stores and online delivery services.

German residential real estate company Vonovia rose 2.9 per cent as it announced an 8 per cent rise in first-half core profits and confirmed its guidance for the year.

However, BMW slid 3 per cent as lockdowns pushed the carmaker to a second-quarter operating loss as deliveries of luxury cars fell by 25 per cent during the period.

Investors have largely looked past a slump in profits for European companies on the expectation that the trillions of dollars central banks are injecting globally into the financial system will prop up stock markets until recovery takes hold.

Companies listed on the Stoxx 600 are expected to report a decline of 67.5 per cent in second-quarter earnings, down from a drop of 58.3 per cent forecast the week before, according to Refinitiv data.

REUTERS