European shares ended a seven-day losing streak to trade in the green Wednesday, following its US counterparts higher. Mixed results also had an impact, with some strong Q4 earnings helping investors maintain a more positive outlook in the early afternoon.
By 1335 BST, the EUROSTOXX was 1.02% higher, while the EUROSTOXX 50 gained 0.76%. The German DAX rose 0.84%, the French CAC was 0.65% in positive territory, while the Spanish IBEX was also up 0.69%.
Europe follows US’ leads
While some Asian indices ended lower Wednesday, European investors were more inclined to follow the strong gains that came at the end of a choppy US trading session overnight.
Analysts also said that investors were taking advantage of some heavy losses made during the past seven-day period.
"Many view the [recent] downturn as a necessity to the runaway equity markets and see it as an opportunity for investors to reinvest at more manageable levels," CMC Markets analyst Oriano Lizza said, according to BBC report.
Another positive factor, Wednesday, was news the German political discussions could soon come to an agreeable end after four-months of talks and numerous break-downs and disagreements.
However, there were warnings that more volatility was likely in store for the stock markets, as investors fully digest the likelihood that US rates could rise more quickly amid a higher inflation backdrop.
European stock movers
While the investor tone is linked to a brighter US session, earnings results also had an impact on European stock moves, Wednesday.
Among the risers were Norwegian oil and gas firm Statoil shares, which gained 3.35% to NKR180.40 on positive Q4 earnings and news the business was raising its dividend.
Other gainers Wednesday included:
- Hexagon shares surged 10.37% to SEK498.10 after the Swedish industrial tech firm announced stronger than expected Q4 results.
- Tullow oil shares rose 2.48% to £188.05 after reporting a narrower loss in 2017.