European shares were mixed in mid-afternoon trading Tuesday, as earnings results failed to point investors in a single direction. Other news also played its part in the direction of the indices. Oil-related news proved supportive for oil stocks, while the another decline in the German IfO index weighed on the euro.
By 1335 BST, the EUROSTOXX 600 was 0.12% higher while the EUROSTOXX 50 moved into negative territory, falling 0.04%. Regional bourses were also a little mixed. The German DAX rose 0.09%, however, the French CAC was marginally in negative territory, while the Spanish IBEX lost 0.35%.
Oil price news, IfO drop boosts stocks
The price of Brent crude oil broke through $75 per barrel, hitting a 14-year high amid rising Saudi Arabia and Yemeni tensions. News that the US could also put Iran sanctions back in place added to the upward pressure on oil prices.
A further decline in the German IfO business sentiment index weighed on the euro, making European exporter stocks more attractive to investors.
Germany’s IfO institute’s monthly business sentiment index slipped to 102.1 in April, from March’s 103.3.
“High spirits among German businesses have evaporated,” said IfO Institute president, Clemens Fuest. “The German economy is slowing down,” he added.
Against that backdrop, there were some share moves of note.
Deutsche Bank shares were 3.5% higher at €12.10 amid news the bank has appointed a new COO and reports of major revamp news as soon as this Thursday, when it announces its Q1 earnings.
Meanwhile, Telecom Italia shares slipped 0.62% to €0.86 as the telecoms firm’s deputy chairman stated arguments within the board and the ongoing disagreement between activist investor Elliot and major shareholder Vivendi, are harming the business.
Franco Bernabe told the annual general meeting that all shareholders must work together in the best interest of the business. An entire new TIM board will be elected on May 4th.