European shares end higher on tech support; banks slide
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
STOXX 600 up 0.4%
SocGen's weak prospects in French retail hits shares
Novo Nordisk down after rival Amgen teases weight-loss drug data
Puig gets lukewarm reception in Spanish market debut
Daimler Truck falls after flagging rising headwinds in Europe
Updated at 1558 GMT
By Ankika Biswas and Johann M Cherian
May 3 (Reuters) -European shares notched its biggest one-day gain since a week ago on Friday, driven by gains in the technology sector, while banks dropped to over a week's low, weighed down by Societe Generale following a dismal forecast.
The pan-European STOXX 600 index .STOXX rose 0.4%, boosted by a 1.6% gain in the technology sector .SX8P following an upbeat quarterly sales forecast from U.S-based Apple AAPL.O.
However, the top index was set for a weekly decline, as investors navigated the earnings season in full drive and the European Central Bank's policy outlook beyond June.
Offsetting the optimism, the banking sector .SX7E dropped 0.8%, as Societe Generale SOGN.PA reversed early gains and slid 5.2% to the bottom of France's CAC 40 index .FCHI after the lender said annual net interest income from its French retail business would be at the lower end of guidance.
On the other hand, Credit Agricole SA CAGR.PA climbed 1% after a forecast-beating 55% jump in first-quarter net profit.
"There is always a trade-off between net interest margins and the quality of the loan book and both multipliers have been heavily impacted by the state of the local economies in which they operate," said Richard Flax, chief investment officer at Moneyfarm.
"The euro zone has not been particularly strong and only some banks have been able to (maintain) that profitability."
Danish drugmaker Novo Nordisk NOVOb.CO dropped 2.5% and weighed on the top index, after rival Amgen AMGN.O said it was encouraged by interim trial data on its experimental obesity drug.
Elsewhere, European Central Bank policymaker Yannis Stournaras indicated three rate cuts this year as stronger-than-expected economic growth supports inflation, while chief economist Philip Lane noted the central bank should accumulate data before each cut.
Investors will also keep a tab on Fitch's credit rating review on Italy and Moody's credit rating review on Europe's stability mechanism.
In a lukewarm reception to Spain's largest initial public offering in almost a decade, Puig's PUIGb.MC shares hovered just above their issue price following the beauty group's market debut.
Among others, Henkel HNKG.DE jumped 7.2% and was the biggest boost to the DAX .GDAXI after the consumer goods company slightly raised its 2024 guidance, while Aurubis NAFG.DE slumped 11% to the bottom of the STOXX after UBS downgraded the largest European refined copper producer to "sell" from "buy".
German truck maker Daimler Truck DTGGe.DE dropped 3.8% after warning of rising headwinds in the European market, casting a shadow over its first-quarter profit beat.
Of the STOXX 600 companies to have reported earnings to date, 58.8% have exceeded estimates, compared with a long-term average of 54% as per LSEG data released on Tuesday.
Reporting by Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Mrigank Dhaniwala, Varun H K and Jonathan Oatis
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
