European markets inch higher on strong day for mining stocks

European shares reversed early declines to gain on Tuesday as robust earnings from the region and the US outweighed concerns about downbeat economic data in the euro zone, while bank shares underperformed.

Wall Street stocks rose as a sell-off in US Treasuries eased, while upbeat corporate forecasts boosted optimism about corporate America’s health in the face of a slowing economy and higher inflation.

Dublin

The Iseq edged down 0.1 per cent as gains for key stocks including Smurfit Kappa, Kerry and Flutter Entertainment were more than offset by losses elsewhere.

It was a weak day for financial stocks across Europe, with Bank of Ireland declining 3.4 per cent to €8.65 and AIB dropping 2.8 per cent to €4.03. Ryanair also finished in the red, nudging down 0.2 per cent to €14.54.

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But food group Kerry advanced 1.6 per cent to €74.32 and packaging giant Smurfit Kappa climbed 1.3 per cent to €26.69. Paddy Power-owner Flutter, meanwhile, added 0.8 per cent to close at €150.05, and Cairn Homes rose 0.9 per cent to €1.11.

London

The benchmark FTSE 100 inched 0.2 per cent higher, snapping a four-day losing streak, as the index was supported by miners and heavyweight drugmaker AstraZeneca. But gains were capped by underwhelming earnings reports, while the mid-cap FTSE 250 slipped 0.4 per cent.

AstraZeneca said the US Food and Drug Administration (FDA) has accepted for review the company’s application seeking approval for patients or caregivers to administer its nasal flu vaccine. The drugmaker’s shares climbed 3.3 per cent.

Miners added 2.3 per cent, leading sectoral gains on the FTSE 100 as copper prices steadied and Rio Tinto rose 3.5 per cent on a ratings upgrade by analysts at Barclays.

Limiting gains, Barclays fell 6.5 per cent after its third-quarter profit dipped from a year ago on sliding revenues in its investment bank. The lender also hinted at big cost-cutting later this year and warned competition for savers’ money was eating into its margins.

Shares of CAB Payments tanked 71.9 per cent after the money transfer company guided full-year group revenue at 17 per cent below its previous forecast.

Europe

The pan-European STOXX 600 index ended 0.4 per cent higher, led by mining stocks as metal prices ticked higher. Lenders declined following Barclays’ earnings statement, however, while Spanish bank stocks fell on uncertainty over a potential profit hit after calls to boost a windfall tax under a coalition government deal.

Hermes rose 2.8 per cent as the Birkin bag-maker beat third-quarter sales estimates, defying a slowdown in the broader luxury sector.

Puma shares rose 7.6 per cent after the German sportswear brand stood by its full-year profit forecast despite a drop in third-quarter earnings.

Logitech International jumped 10.2 per cent after lifting its full-year guidance, while IT services firm Softcat slumped 11.9 per cent on a decrease in its full-year revenue.

New York

Wall Street’s main stock indexes advanced in early trading as upbeat forecasts from Verizon, Coca-Cola and others boosted optimism about the health of leading US corporations.

Verizon surged 9.1 per cent after the wireless carrier raised its annual free cash flow forecast, while General Electric rose 6.9 per cent after the aircraft engine manufacturer lifted its full-year profit forecast.

Coca-Cola advanced 2.7 per cent on raising its annual sales outlook, while industrial goods maker 3M gained 5.2 per cent after lifting its full-year adjusted profit forecast. RTX jumped 6.1 per cent after it reported better-than-expected quarterly earnings.

Microsoft and Google’s parent company Alphabet were scheduled to report results after the close of markets.

– Additional reporting: Reuters