Europe open: Shares rally on upbeat earnings, travel sector

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Sharecast News | 21 Jul, 2021

Updated : 08:59

European shares opened higher on Wednesday as upbeat earnings reports and a strong rise in travel stocks boosted sentiment.

The pan-European STOXX 600 index rose 0.94% in early trade with all major regional bourses higher.

In corporate news UK fashion retailer Next soared almost 10% to top the Stoxx after lifting annual profits guidance to the upper end of forecasts.

Travel stocks were also in favour, with cruise line operator Carnival up 6% after announcing more sailings in the summer/autumn season on Tuesday. British Airways owner IAG, and budget carrier easyJet were also higher.

Future rallied 9% after the magazine publisher and GoCompare owner said full-year profitability was set to be "materially ahead" of current market expectations amid a continued strong performance.

Dutch semiconductor equipment maker ASML rose 4% as it raised its 2021 sales outlook and announced a new share buyback plan.

Swiss drugmaker Novartis added 2.1% as its second-quarter core net income beat market expectations, boosted by its key drug brands.

Among decliners, German business software group SAP slid 3.9% despite raising its outlook for the second time this year.

Mercedes-Benz maker Daimler fell 1.1% after it warned that a global shortage of semiconductor chips will dent car sales in the second half of 2021.

Royal Mail slumped after it said revenues rose 12.5% in the first quarter as people continued to shop online with Covid lockdown restrictions still in place, but that UK parcel volumes had started to slip as curbs were lifted.

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