Europe open: Share nudge record highs on strong earnings reports
European shares moved back towards record territory on Thursday as strong corporate earnings reports drove sentiment ahead of the European Central Bank’s policy decision later in the day.
The pan-European Stoxx 600 index rose 0.42% by 0728 GMT, with all major regional bourses higher after a retreat on Tuesday driven by fears of a new wave of Covid-19 cases from India.
“The European Central Bank isn’t expected to ruffle any feathers this Thursday, with analysts predicting that it will be another steady session from (bank chief) Christine Lagarde and co,” said Spreadex analyst Connor Campbell.
“But with a while until the next meeting – the central bank skips May – the ECB could use this opportunity to sharpen its forward guidance. There are also hawks lurking among the doves, meaning the get-together may not go as smoothly as forecast.”
In equity news, shares in Nestle rose 2.2% after the company reported its strongest quarterly sales growth in 10 years, helped by demand for coffee, dairy and petcare products.
AB Volvo shares were up as the Swedish truck maker beat market expectations for first-quarter core earnings on the back of surging demand.
Centamin shares rose as the miner maintained full year output and reported higher quarter-on-quarter gold production due to improved mining grades.
Credit Suisse fell 5.7% after it posted a 757 million Swiss franc pre-tax loss in the first quarter, as the Archegos hit wiped out trading gains.