European shares are trading lower Thursday, as Wednesday’s recovery proves short-lived. A number of shares are in positive territory on deals news and earnings, however the more subdued sentiment from a weaker US session pervades.
By 1340 BST, the EUROSTOXX 600 was 0.26% lower, while the EUROSTOXX 50 lost 0.81%. The regional bourses were equally downbeat. The German DAX fell 0.81%, the French CAC was 0.53% in the red and the Spanish IBEX was down 0.94%.
M&A, earnings news pushes some stocks higher
Despite the overall downbeat tone of the European indices Thursday, there are some positive moves.
Danish business TDC shares surged 20.48% to DKK45.33, after receiving – and rejecting - a takeover offer from Macquarie and three Danish pension funds.
Swiss Re shares were 4.30% higher at CHF94.06 on news it as in talks with Softbank to sell a minority stake to the Japanese financial service and energy giant.
Meanwhile, positive earnings reports from UniCredit and Societe Generale also helped boost those shares. UniCredit shares gained 3.38% to €18.06, while Societe Generale shares were 3.75% higher at €45.92.
Elsewhere, Zurich Insurance shares rose 2.55% to CHF309.30 after reporting expectation beating profits.
Strong economic backdrop seen supportive, further out
Despite that positive activity, there were still a large number of fallers across Europe Thursday:
- Air Liquide shares lost 1.55% to hit €101.35.
- Airbus shares were 2% lower at €86.63.
- AXA lost 0.62% to trade at €25.68.
- Banco Santander was down 0.87% to €5.68.
- Volkswagen off 0.95% to €169.75.
However, analysts remain confident that Europe’s relatively healthy economic outlook will help limit any long-term damage to investor sentiment.
“It’s impossible to predict how markets may move in the next few days but there are positive signs that markets are continuing to settle down,” Sven Balzer, Head of Investment Strategy at Coutts. “We remain confident in the health of the global economy and corporate sector.”