European shares are higher Thursday, as investor attention turns to earnings reports and the European Central Bank meeting. A host of earnings proved positive, while news that China could reduce auto import tariffs boosted some car manufacturer stocks.
By 1400 BST, the EUROSTOXX 600 was 0.43% in the green and the EUROSTOXX 50 gained 0.24%. The German DAX was 0.06% higher, the French CAC was up 0.53% and the Spanish IBEX was 0.40% in positive territory.
Plethora of earnings lend support
There were plenty of earnings reports for investors to take their cue from, earlier Thursday. And, while there were some disappointments, the overall tone was positive.
Deutsche Bank was among the weaker releases after reporting a Q1 net income of €120 million, a 79% decline compared with a year earlier. The German bank’s CEO Christian Sewing, meanwhile, also announced additional restructure plan for the business and more staff reduction.
Deutsche Bank shares lost 1.18% to trade at €11.85.
But that didn’t set the tone for investors, as a variety of other businesses’ results received a brighter welcome.
Total shares climbed 2.23% after the French energy company said record production levels boosted Q1 profits.
Neste shares jumped 16.16% to trade at €62.42 after the Finnish oil refining firm reporting better-than-expected earnings in the first three months of the year.
And, Norwegian Air shares gained 15.37% to €31.90 as reports emerge that some companies are interested in the airline.
Auto stocks gain
Also helping to lift European indices into the green Thursday afternoon, is news that China is considering reducing the tariff charges on car imports into the country, in an effort to lift imports and encourage more trade to the economy.
A number of European car manufacturers’ shares gained on the news:
- Peugeot shares rose 0.84% to €20.35.
- Fiat Chrysler shares were up 3.46% at €19.81.
- And Volkswagen shares moved 2.49% higher to €171.16. Q1 results here were also a positive factor.