European Shares Extend 2019 Rally as More Risk-On Mood Prevails
European Shares Steady as Oil Stocks Jump on BP Earnings Beat
(Bloomberg) -- European shares jumped to the highest since early December as a more risk-on mood prevailed following strong results from BP and an upward revision of euro area PMIs.
The Stoxx 600 Index rose 1 percent as of 1pm CET, led by gains in oil stocks as BP jumped 5 percent after reporting profit that beat estimates on rising output. Construction, banks and chemicals were among other sectors to outperform. Jeweler Pandora surged 13 percent, helped by a pledge to return 4 billion kroner ($610 million) to shareholders.
The European equity benchmark is headed for a sixth straight session of gains, pushing the market back toward levels seen prior to December’s sell-off. Investors will watch U.S. President Donald Trump’s State of the Union address later in the day for any signals on trade or a budget compromise.
Tuesday’s market strength didn’t extend across the board. The real estate sector fell slightly and was the worst performing subgroup after Societe Generale cut price targets for some names in the sector by an average of 16 percent. AMS plummeted 13 percent after the chipmaker suspended its cash-dividend policy and scrapped guidance.
To contact the reporter on this story: Macarena Munoz in Madrid at mmunoz39@bloomberg.net
To contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Paul Jarvis
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