European shares rise amid upbeat earnings results

European shares are higher Friday as upbeat earnings buoy investor sentiment.

European shares rise amid upbeat earnings results

European shares are higher Friday as investor sentiment – already positive after the removal of US-EU trade concerns – gained more support from some upbeat company earnings. French grocer Carrefour delivered stellar results that helped lift the European indices.

Gains were tempered a little, however, by luxury brand business Kering, who’s results disappointed. A lower-than-expected GDP print for France also dimmed the shine a little.

By 1405 BST, the EURSTOXX 600 had gained 0.36%, while the EUROSTOXX 50 was up 0.40%. Regional bourses were also in the green. The German DAX rose 0.54%, the French CAC was 0.29% higher and the Spanish IBEX was 0.53% in positive territory.

Carrefour results

French grocer Carrefour reported that its H1 sales rose 0.7% from the same period a year earlier. Meanwhile, its recurring operating income increased 5.8% to €597 million.

The business also said that its 2022 turnaround plan had begun well and that it remained on track to deliver on the current 2020 and 2022 targets.

The first-half performance marks a clear improvement,” said Carrefour’s Chairman and CEO Alexandre Bompard “The fast start of the Carrefour 2022 plan reinforces our confidence in Carrefour's ability to transform itself rapidly and in depth.”

Carrefour shares surged 11.61% to hit €15.52.

Not all good news

While investors clearly found plenty to be positive about Friday, there were some detractors from the upbeat performance.

Kering shares sank 7.16% to €466.80, despite reporting strong growth. The luxury brand owner reported total group operating income of 53% in the first half of 2018 from a year earlier. However, while Gucci was a major contributor to that with a 38.2% operating margin, it fell just shy of the 40% target, disappointing investors.

Also weighing a little on the positive tone, was the latest French GDP release from French statistical agency. INSEE said French GDP grew 0.2% on the quarter during the second quarter of the year, due to strike action and a slowdown in consumer spending.

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