Latest news with #VireshKanabar
Business Recorder
18-07-2025
- Automotive
- Business Recorder
European shares rise as investors focus on earnings
European shares rose on Friday, boosted by gains in Vestas and Saab, while investors focused on corporate earnings for clues on the impact of U.S. tariff policies on businesses. The pan-European STOXX 600 index rose 0.5% to 549.48 points, as of 0931 GMT, and was on track for a second weekly gain. Other major regional indexes also rose, with France's CAC 40 leading the pack with 0.6% gain. Wall Street indexes touched record highs on Thursday after strong economic data and earnings reports showed American consumers remained willing to spend. In Europe, positive corporate news helped offset concerns on trade after U.S. President Donald Trump threatened to impose a 30% tariff on the European Union. Investors awaited clarity from the U.S.-EU trade talks, with the bloc preparing retaliatory measures in case negotiations with Washington failed. 'Across the globe, analysts have already downgraded near-term earnings forecasts. So the bar is quite low to beat,' said Viresh Kanabar, macro strategist for asset allocation at Macro Hive. 'The only tariff that's in place is a 10% tariff on Europe. It's not damaging. It's only if the rate increases that it will have a lasting impact.' Britain and Germany signed a wide-ranging friendship treaty on Thursday that aims to deepen ties in areas such as defence and transport, as the UK attempts to reset ties with the EU. The oil and gas sector led the broad-based gains in Europe, up 1.2%, tracking higher oil prices after the European Union agreed to new sanctions against Russia. Industrials stocks touched a record high, up 0.7%, led by gains in Saab. The Swedish defence material maker jumped 10.8%, taking year-to-date gains above 130%, after it posted higher-than-expected second-quarter earnings and raised its sales outlook. Vestas Wind Systems gained 12.3% after J.P. Morgan upgraded the Danish wind turbine maker to 'overweight' from 'neutral'. SKF rose 5.4% after the Swedish industrial bearings maker reported second-quarter earnings above market estimates. Getinge gained 6.3% after the Swedish medical equipment maker reported second-quarter core earnings above market expectations. On the flip side, GSK fell 5.7% after a U.S. FDA advisory panel recommended against approving its blood cancer drug Blenrep. Swedish home appliances maker Electrolux slumped 14.8% after poor second-quarter performance in Europe and India's Reliance Industries said its retail unit acquired home appliance maker Kelvinator from Electrolux.
Reuters
02-07-2025
- Business
- Reuters
European shares rise; investors await signs on trade progress
July 2 (Reuters) - European shares edged higher on Wednesday, led by banks, while investors assessed the prospects for trade deals ahead of U.S. President Donald Trump's July 9 tariff deadline. The pan-European STOXX 600 index (.STOXX), opens new tab advanced 0.3% at 541.91 points, as of 0818 GMT. Other major regional indexes also traded higher. Trump, on Tuesday, said he was not considering an extension of the July 9 deadline for countries to negotiate trade deals with the U.S. He expressed optimism about a potential trade deal with India but was skeptical about reaching a similar agreement with Japan. Meanwhile, European Union's trade chief is expected to hold negotiations this week in Washington to avert higher U.S. tariffs. "It looks like there is progress slowly being made (on trade deals)....whether this deal occurs by the 9th or after isn't that relevant as long as the trajectory is quite good.", said said Viresh Kanabar, macro strategist - asset allocation at Macro Hive. In the U.S., Senate Republicans passed Trump's massive tax-and-spending bill on Tuesday by the narrowest of margins. The legislation now heads to the House of Representatives for possible final approval. Banks (.SX7P), opens new tab led sectoral gains, rising 1.5%. European industrial miners (.SXPP), opens new tab rose 1.4%. Kanabar said that investors are seeing a source of good value in European banks, noting, "the banking system has moved away from the pre-pandemic period of low returns and the consumer picture is much stronger". Among stocks, Spain's Banco Sabadell ( opens new tab gained 5.1%, the most among bank stocks, after Santander ( opens new tab said it had reached an agreement to buy its British unit TSB. Avanza Bank ( opens new tab gained 7% after a report said that the Swedish financial group's founder is considering taking the company private. Shares in European renewable energy companies rose after the U.S. Senate passed a revised budget bill that was more positive for the wind industry compared to an earlier version. Vestas ( opens new tab rose 9.4% and was the top gainer in the STOXX 600. Orsted ( opens new tab gained 4.1%, hitting a three-month high. Britain's Spectris (SXS.L), opens new tab gained 4.5% after the scientific instruments maker accepted an improved takeover offer from U.S. private equity firm KKR (KKR.N), opens new tab. Conversely, Greggs (GRG.L), opens new tab fell 14.3% after the British baker and fast food chain said its annual operating profit could be modestly below last year's levels. Additionally, the Financial Times reported on Wednesday that the EU is blocking the UK government's attempts to join a pan-European trading bloc. Euro-zone unemployment data for May is due later in the day.
