European shares are higher Thursday afternoon, reversing a downbeat open as indices followed the US and Asian markets into negative territory. While there were some disappointing European earnings updates and sentiment remains weak amid Brexit, US trade and Saudi tensions, some upbeat third quarter earnings reports worked to ease a few fears.
By 1500 BST, the EUROSTOXX 600 was 0.23% in the green, while the EUROSTOXX 50 moved 0.75% higher. Regional bourses had also recovered from earlier losses. The German DAX rose 0.50, while the French CAC gained 1.51% and the Spanish IBEX was 0.98% in the green.
Weak sentiment weighs at open
European stocks have recovered from earlier losses, Thursday. The open was dogged by steep declines in the US Wednesday and overnight in Asian trading.
The Nikkei 225 Average fell as far as 4% during the Asian Thursday trading session, before closing 3.72% lower. Worries over export-related businesses hurt, as the yen gained strength against the US dollar and the euro, giving investors pause for thought over their investment decisions.
When the yen strengthens, it makes Japanese goods more expensive when compared with other regions and can also weigh on company revenues.
Meanwhile, fears over the lack of agreement over Brexit terms and the ongoing Saudi Arabia – US diplomatic issues, surrounding the murder of US journalist Jamal Khashoggi, both continue to weigh on broader market sentiment.
A raft of Q3 earnings reports proved a mixed bag and resulted in a mixed performance among sectors and individual stocks.
Auto stocks were on the up, supported by Peugeot’s update. The Paris-based car maker said Wednesday that its Q3 revenues grew 7.8% from a year earlier, boosted strong sales of the more expensive models. The Opel-Vauxhall acquisition also proved positive for the PSA Group.
Peugeot shares rose 7.43% to €20.47.
AB InBev shares, meanwhile, sank almost 10% after it slashed its dividend by 50% to help reduce its debt levels.