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European stocks fall despite strong earnings

GERMANY (OBSERVATORY) –¬†European shares fell in early trade on Wednesday as worries about rising bond yields outweighed a combination of good earnings for Kerring and Credit Suisse, while Shire jumped after accepting an improved takeover bid from Takeda.

The Stoxx 600 European index fell 0.5 percent, moving further from its highest level since early February, while Germany’s DAX fell 0.6 percent. Britain’s Financial Times 100 index fell 0.4 percent.

Almost all European sectors performed in negative territory and oil and gas companies were among the lowest, with crude prices falling from recent highs.

Some of the strong earnings results did not lift morale.

Kearny was the biggest gainer, jumping 7 percent after the luxury goods company said it made impressive performance in the first quarter, thanks to strong demand for Gucci clothing and bags.

Credit Suisse was the biggest performer in the banking sector, jumping 4.6 percent after the bank’s first-quarter profit exceeded expectations.

Despite concerns about semiconductor stocks, especially those in the Apple supply chain, which affected the sector this week, ST Microelectronics rose 4.8 percent after a strong second-quarter demand for smartphone-related products.