Europe midday: Stocks rise on mixed corporate earnings, euro falls

European stocks rose on Wednesday following mixed corporate earnings and weak oil prices, while the euro continued to struggle.

At midday, the benchmark Stoxx Europe 600 index was up 0.41% to 334.23, Germany’s DAX was flat at 11,554.18 and France’s CAC 40 increased 0.45% to 4,776.05.

Mike van Dulken, head of research at Accendo Markets, said: “Major equity markets are positive but gains rather muted by weak oil prices following a big US stockpile build that fuels concern about rising US production trumping OPEC cuts.

“This is weighing on risk appetite, adding to European (and US) political jitters and fresh interest in both fixed income bonds and traditional safe havens like gold.”

Brent crude was down 0.32% to $54.87 per barrel and West Texas Intermediate fell 0.57% to $51.87, while gold reached a three-month high, to above $1,237 a troy ounce.

The euro fell 0.32% against the dollar to 1.0649 and was down 0.13 against the pound to 0.85268.

Elsewhere, Greece was also in focus amid concerns about the country’s ability to repay it debt. A report by the International Monetary Fund said that Greece would fail to hit its budget-surplus targets set under the bailout terms by its creditors following its annual assessment.

In corporate news, Danish shipping giant AP Moller-Maersk dropped 5.33% after it posted a $2.68bn quarterly loss and halved its dividend.

Carlsberg also fell 3.41% after the Danish brewer swung to a profit in the second half of the year, but revenue fell.

London listed Tullow Oil was down 5.08% after the oil and gas explorers said that full year revenue and profit fell, although losses narrowed,

Whereas Sanofi rose 2.13% after the French pharmaceutical’s fourth quarter profit more than doubled.

Norwegian insurer Storebrand gained 5.2% after it beat earnings forecasts and will pay a its first dividend in six years.

Vinci was up 5.14% after the French construction firm said late on Tuesday that it will hike its dividend and predicted an increase in revenue for 2017.

German airline Lufthansa which gained 3.4% following positive Air France traffic figures and a upgrade of its stock to ‘buy’ from Société Générale.