EUROPEAN UNION (OBSERVATORY) – European shares rose on Friday to rally near a one-month high at the end of a week in which political tensions weighed down, with disappointing corporate results triggering some sharp moves in stocks.
The STOXX 600 index of European equities is heading for a third consecutive week of gains, the longest rally since January, as investors ignore political tensions and focus instead on the expected business season to support equity markets.
European companies’ first-quarter results posted a positive start, but companies whose expectations have broken expectations have fallen.
UK software maker Sage Software fell 19 percent to record the biggest drop on the Stokes index after the company cut its full-year revenue forecast as software subscription growth slowed.
On the other hand, shares of Stora Enso of Finnish paper production jumped 4.5 percent to top the index high stocks after the results exceeded the expectations of the first quarter.
M & A news continued to play its role as a major market driver.
Clippier shares rose 4.3 percent after the commercial real estate firm said it had abandoned a bid to buy Hamerson and would not continue seeking to acquire the British company.
At the same time, Hammerson shares fell 13 percent to erase almost all of the gains they made since the first announcement of Klebeyer’s offer on March 19.
In reaction to the results, L’Oreal shares fell after touching a five-month high in early trading and trading in the latest low of 0.2 percent. The company achieved strong sales thanks to good performance in China and the luxury cosmetics sector.
By 0837 GMT, Germany’s DAX rose 0.48 percent and France’s CAC 40 gained 0.19 percent, while Britain’s FTSE 100 <.FTSI> was down 0.07 percent.