European shares close at a new record as earnings offset Mideast uncertainties
The European stock market closed at an all-time record high on Wednesday, as investors scrutinized the latest corporate earnings and watched the rapid developments in the Middle East conflict.
After closing at a record high in the previous session, the pan-European STOXX 600 closed 0.04% higher at 657.14.
European shares reached record highs three out of four sessions in a row as positive corporate earnings overshadowed concerns about the Middle East conflict.
Spain's IBEX bucked this trend, rising 0.2%, and was the only major benchmark to show a positive return.
The markets were weighing mixed messages from the Middle East following a missile strike by Yemen's Iran aligned Houthi Group on a Saudi oil tanker at the Red Sea.
This development comes after U.S. president Donald Trump stated on Tuesday that his administration had held "very positive discussions" with Iran over a day-long negotiation.
Kathleen Brooks is the research director of XTB. She said: "By and wide, they (markets), are discounting geopolitical narratives.
The key factor driving the stock market right now is corporate fundamentals.
Glencore shares rose by 4.1%, after the company beat expectations with an 86% increase in its first-half earnings.
Siemens Energy's third-quarter performance was not much different despite its record.
Heineken shares rose by 2.2%, after the Dutch brewing company beat its first-half profits forecasts and cut about 3,000 positions.
The mining sector led gains with a 2.3% increase as gold prices rose to an all-time high due to the weaker dollar.
Reports said that the Chinese mainland tax authorities had begun to tax personal income on insurance policy returns. Insurer Prudential dropped 6.4%. HSBC, a European bank with a strong Asian focus, fell 4.7%.
Novo Nordisk's shares fell 4.3%, despite an increase in its sales and profit forecast for the full year. Investors focused instead on a narrow miss in sales for?its Wegovy tablet and a setback during a clinical trial for its next generation obesity drug, CagriSema.
The path to a continuous global Wegovy 'pill supply wasn't clearly defined. Citi Research analysts said that manufacturing readiness is important for sustaining momentum, as launches are expanding beyond the US. Demand will also be increasing rapidly. Danish drugmaker aims to regain market share from Eli Lilly on the rapidly growing obesity-drug markets. Novo, once Europe's largest listed company by 2024 has seen its value plummet as the expectations of obesity drug?growth have cooled.
Sandoz, on the other hand, rose 6% after the Swiss generic drugmaker announced a 9% increase in net sales for its second quarter, due to a strong growth of biosimilars, as popular medicine patents are expiring.
(source: Reuters)
