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Europe: Strong results from UBS, Peugeot boost European stocks

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The pan-European STOXX 600 rose 0.4 per cent, with heavyweight UBS the biggest boost, up 3.2 percent after its second-quarter profit topped expectations.

[LONDON] Strong results from bank UBS, autos firm PSA and chipmaker AMS propelled European stocks up on Tuesday, breaking a three-day slide as the earnings season delivered a hoped-for boost to a lacklustre market.

Some of this year's worst-performing sectors - autos and banks - outperformed thanks to these solid updates.

The pan-European STOXX 600 rose 0.4 per cent, with heavyweight UBS the biggest boost, up 3.2 percent after its second-quarter profit topped expectations.

In an earnings season where investors are honing in on companies' future outlook, guidance from several corporates came in particularly strong, driving sharp share price gains.

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Austrian chipmaker and iPhone supplier AMS jumped 11 per cent to the top of the STOXX after the company said new orders would secure strong growth in the second half, and reported higher than expected second-quarter revenue.

PSA Group rose 9.5 per cent after the Peugeot owner reported strong profits thanks to a turnaround at its newly acquired Opel division. The stock hit its highest level since mid-June 2008.

French prepaid meal voucher and card provider Edenred touched record highs, up 7.2 per cent, after predicting it would beat annual growth goals this year.

Finnish paper maker UPM rose 3.1 per cent after it forecast significant earnings growth for the second half.

In not so rosy results, shares in electrical components supplier Spectris fell 6 per cent, with analysts disappointed the company provided no further details on cost saving programmes.

REUTERS