Europe open: Shares nudge record highs as earnings news helps rally
European shares nudged record highs on Thursday, continuing their rally on strong earnings news, although bourses across the region were mixed.
The pan-European Stoxx 600 index was up 0.12% in early trade. France’s CAC 40 was up 0.27%, while Germany’s DAX was flat and the UK’s FTSE 100 down slightly ahead of an interest rate decision from the Bank of England later in the day.
The bank is expected to maintain its massive stimulus program despite continued recovery from Covid-19 pandemic lows and a rebound in inflation.
In corporate news diagnostics group Eurofins saw its shares climb to the top of the Stoxx after reporting record first-half earnings and raising its full-year outlook.
Shares in German skincare manufacturer Beiersdorf gained almost 5% after strong results.
Pharmaceutical giant Merck saw its shares rise after second-quarter profits beat expectations, on the back of increased demand for lab equipment and supplies for developing Covid-19 treatments and vaccines.
French lender Credit Agricole fell despite profit for the period also doubled, reaching €1.97bn from €954m this time last year.
Paper and packaging group Mondi rose after reporting higher sales volumes and better average selling prices in its first half.
German online fashion retailer Zalando dropped 7.2% despite reporting that it expects 2021 operating profit to come in at the upper end of its forecast range as sales rose 34% in the second quarter despite the easing of coronavirus lockdowns.
Danish company Novo Nordisk rose after it raised its full-year forecast and posted above-forecast quarterly earnings on strong sales and demand for its new obesity drug.
German industrial firm Siemens climbed 3.9% as it lifted its profit guidance for the third time this year.
WPP shares rose 3% as the advertising giant upgraded its outlook and boosted shareholder returns after swinging back to profit in the first half of 2021.