Europe midday: Shares extend gains on corporate earnings

European stocks extended gains on Wednesday as investors shrugged off gloomy IMF growth forecasts and the continuing war in Ukraine.

The pan-European Stoxx 600 index was up 0.43% in early deals, with all regional bourses higher.

In Ukraine, Russian forces captured the eastern city of Kreminna, its regional governor said, marking the first city to be captured in the newest phase of the war.

Investors are digested International Monetary Fund and World Bank cuts to global growth forecasts.

On Tuesday, the IMF cut its global growth projections for 2022 and 2023, saying the economic impact from Russia’s invasion of Ukraine will “propagate far and wide”.

The World Bank on Monday lowered its global growth forecast for 2022 by nearly a full percentage point, from 4.1% to 3.2%, citing the war.

In Germany, producer prices rose 30.9% on the year in March, reflecting the effects of the Ukraine conflict for the first time, according to official data.

In equity news, shares in Danone jumped 9% after the French food group posted stronger-than-expected first-quarter sales growth and maintained its 2022 targets.

Just Eat Takeaway shares surged 7.5% despite the company saying it was looking at a partial or full sale of Grubhub, reported a dip in first-quarter orders and also cut its guidance for the full year.

Shares in brewer Heineken rose after the company achieved a sharper rise in first-quarter beer sales as European bars reopened.

Credit Suisse shares fell after the Swiss bank said it expects a loss in reported first-quarter earnings after increasing legal provisions.

Shares in dental care company Straumann slumped 90% as the company said its share split would take effect next week.

Anglo-Australian mining giant Rio Tinto slumped after it reported lower-than-expected iron ore shipments in the first quarter as it warned of inflationary risk, a resurgence of Covid lockdowns in China and the impact of a prolonged Russia-Ukraine war. Miners in general were weaker as copper prices fell, with Anglo American, Glencore and Antofagasta all down.