European shares are nearing record highs, as earnings offset Mideast uncertainties
European shares were muted Wednesday as investors assessed a new batch of 'corporate' earnings while keeping a close eye on the fast-moving Middle East developments.
By 857 GMT the pan-European STOXX 600 Index was up 0.07% to 657.27, briefly reaching an intraday high after having closed at an all-time high in the previous session.
The major benchmarks in regional comparisons have also remained relatively unchanged.
The markets were weighing mixed signals from the Middle East following a missile strike by Yemen's Iran aligned Houthi Group on a Saudi oil tanker in the Red Sea. Brent crude futures jumped 1.2% following the incident, and last traded at $80.39.
This?development' came after U.S. president Donald Trump stated on Tuesday that during a day-long negotiation, his administration held "very positive discussions" with Iran.
Kathleen Brooks is the research director of?XTB. She said: "By and large, they (markets), are discounting geopolitical narratives.
Corporate fundamentals is the main theme that drives stocks today. Energy stocks rose by 0.6% on the back of higher oil prices.
Siemens Energy shares rose 1.3% following the company's record third quarter results. The energy provider was boosted by the Middle East power plant project and rising demand for AI data centres.
The mining sector led gains with a 1.4% increase as gold prices rose to an all-time high, aided by a weaker dollar.
Glencore shares rose by 3.3%, after the company beat expectations with an 86% increase in earnings for the first half.
Banks fell by 0.9%. HSBC dropped 3.5% after its results a week earlier.
Novo 'Nordisk's stock fell 3.8%, despite an increase in its sales and profit forecast for the full year. Investors instead focused on a narrow sales miss for its Wegovy pill, and a setback in a clinical trial for its next generation obesity drug CagriSema.
The Danish drugmaker wants to gain ground on Eli Lilly, which is a leader in the rapidly growing obesity-drug industry. Novo, once Europe's largest listed company by 2024, has seen its value plummet as the market for obesity drugs has cooled and increased competition.
Sandoz, on the other hand, rose 7.4% and topped the benchmark index after the Swiss generic drugmaker announced a 9% increase in second-quarter sales. This was driven by the strong growth of biosimilars, as patents for popular drugs expire. Reporting by Tharuniyaa lakshmi in Bengalurui, and Ragini mathur; editing by Mrigank dhaniwala and Janane Venkataraman.
(source: Reuters)
