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European Stocks Close in Green On Strong Earnings

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Last updated: 07/21/2021 12:48:30

12:48 PM EDT, 07/21/2021 (MT Newswires) -- European stocks rallied on Wednesday as investors looked forward to a key European Central Bank meeting and policy announcement slated for Thursday, and following strong Q2 earnings and revenue from some major companies in the region.

The Stoxx Europe 600 was up 1.65%, the German Dax climbed 1.36% and the FTSE 100 in the UK rose 1.70%. The French CAC ended up 1.85%, the Swiss Market Index was up 0.6%.

The UK demanded new changes to the Northern Ireland Protocol to achieve a sustainable "new balance" to stabilize the UK-EU relationship. Brexit Minister David Frost told the parliament that border checks on goods between Great Britain and Northern Ireland have proved unsustainable and burdensome to companies.

The UK's public sector net borrowing, excluding public sector banks, in June achieved the second-highest level for the month since monthly records began in 1993, the Office for National Statistics said. The borrowing totaled 22.8 billion pounds ($31.0 billion) in June 2021, a drop of 5.5 billion pounds from June 2020.

The US and Germany are engaged in progressing talks over a deal that would address their concerns over Russia's nearly complete Nord Stream 2 pipeline, AFP reported, citing State Department spokesman Ned Price. Chancellor Angela Merkel earlier said Germany and US concurred on Ukraine's role as a transit point for Russian gas even as Nord Stream 2 becomes operational soon. Price added that he expects to disclose final details soon.

Swiss bourse operator SIX Group established its new US-based subsidiary SIX SIS USA as part of its global growth strategy.

SIX SIS USA will offer custody services and collect relevant market intelligence data to form the group's US market know-how to be made available to its Swiss, international and local clients.

On the corporate front, Novartis (NOVN.SW) posted strong first-half results, but opted to maintain its guidance for the full year, expecting the COVID-19 pandemic to still slightly impact its oncology and generics divisions. For the six months ended June 30, net income jumped to $4.96 billion, or $2.19 per share, from $4.04 billion, or $1.76 per share, in the previous year. Net sales grew to $25.37 billion from $23.63 billion.

Daimler (DAI.F) swung to a profit in the first half of the year, driving out of a net loss in the year-ago half caused by COVID-19 pandemic. The German carmaker said its first-half net profit was 7.89 billion euros ($9.28 billion), or 7.37 euros per share, compared with a loss of 1.91 billion euros, or 1.78 euros loss per share, a year ago. Revenue grew to 84.5 billion euros from 67.41 billion euros a year earlier. It expects full-year revenue and EBIT to be significantly above the level of the previous year.

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