European shares are higher Tuesday, after investors gain confidence amid upbeat earnings reports from European firms, including banks and car makers. Other positive influences include China’s state council’s plans to support the cooling economy and a better-than-expected earnings update from Google.
By 1340 BST, the EUROSTOXX 600 was up 0.97%, while the EUROSTOXX 50 gained 0.99%. Regional bourses were also upbeat. The German DAX rose 1.57%, the French CAC was 0.97% in the green and the Spanish IBEX was 0.75% in positive territory.
Earnings reports support gains
As the Q2 earnings season continues, some updates published Tuesday, impressed with investors as expectations were surpassed.
Among the upside surprise was Peugeot’s first half earnings update. The French car maker said its total group revenue grew 40.1% in the first half of 2018 from a year ago, to €38.6 billion.
The gain was supported by strong demand for its Peugeot SUV range, as well as a quick turnaround in Opel-Vauxhall that it purchased from GM Motors less than a year ago.
Peugeot shares surged 11.01%, to hit €22.68.
Also supporting the positive investor tone Tuesday, was UBS’ Q2 report. The Swiss bank said its second quarter net profit rose 9% to CHF1.3 billion. Meanwhile, in its outlook, the bank said that expected Federal Reserve rate hikes this year should prove to be supportive, overall, for its business.
UBS shares climbed 3.20% on the earnings update, to trade at CHF15.78.
Investor sentiment also gained a boost from other developments.
Among them was the news that China’s state council had announced new measures to support economic growth across the country. The move comes amid the ongoing, albeit mild slowdown in economic expansion and as US tariff threats remain.
But that wasn’t all that cheered investors.
Google’s latest earnings report came in better-than-expected, despite the $5 billion EU fine. Ad revenues topped estimates and encouraged a sharp gain in the stock after the US closing bell.