European Stocks Rise Slightly, Market Monitors Earnings
European stocks rose on Thursday (April 16), as investors weighed the release of company earnings and growing optimism that the US and Iran could extend the ceasefire for two weeks. The Stoxx 600 Index rose 0.2% at 8:24 a.m. London time, extending risk-on sentiment supported by hopes of a de-escalation of the conflict.
Stock movements were mixed as earnings reports triggered sectoral rotation. Tesco rose 3.1% after its full-year operating profit beat estimates. Conversely, Barry Callebaut fell as much as 12% after reporting first-half profit that missed estimates and lowered its performance guidance for the current year.
Earnings season is expected to be a major source of volatility in European markets in the coming weeks. Investors are watching to see whether the Iran war begins to be reflected in company projections and management commentary, particularly in sectors sensitive to consumer demand and input costs. Luxury stocks are a key indicator, with Kering and Hermes disappointing so far after posting weaker sales amid the sentiment impact of the Middle East conflict.
Looking ahead, the market's focus is on the next wave of earnings reports, as issuers representing more than 60% of the Stoxx 600's market capitalization are scheduled to report within the next three weeks. In pre-market trading, Euro Stoxx 50 and Stoxx 600 futures were also in the +0.2% range, signaling initial support for the market opening. (asd)
Source: Newsmaker.id
