European Shares Rise On Strong Earnings

European stocks rose on Wednesday as investors cheered a batch of strong earnings and awaited policy cues from a Federal Reserve meeting later in the day.

The pan European Stoxx 600 was little changed at 439.55, giving up early gains.

The German DAX, France’s CAC 40 index and the U.K.’s FTSE 100 were up between 0.2 percent and 0.4 percent.

Deutsche Bank soared 7.6 percent as the lender reported its strongest quarterly profits in seven years despite headwinds from restructuring and the coronavirus pandemic.

Lloyds Banking Group surged 4.1 percent after reporting a better-than-expected profit and raising full-year profitability guidance.

Persimmon advanced 1.5 percent. The housebuilder said it was experiencing good demand for newly built homes across the U.K.

Grafton soared 8.3 percent. The builders merchant and DIY retailer said it expects adjusted operating profit for the current financial year to be between 15 and 20 percent ahead of consensus forecasts.

Advertising group WPP rallied 3.5 percent after it reported a surprise return to comparable net sales growth for the first quarter of 2021.

Lysol maker Reckitt Benckiser Group dropped 1.3 percent despite the company reporting a higher than expected jump in quarterly sales and backing its full-year outlook.

Drug maker Sanofi gained nearly 2 percent after confirming its 2021 targets.

Puma tumbled 3.3 percent. After reporting strong first-quarter sales, the sportswear company noted that “recent political tensions in key markets” are leading to increased uncertainty in the industry.

Delivery Hero shares jumped 7.5 percent. The online food ordering company said it expects revenues to more than double in 2021.

Home appliances giant Electrolux rose about 1 percent after it posted a forecast-beating first-quarter net profit.

In economic releases, German consumer confidence is set to weaken in May as rising cases of infections and the tightening of the lockdown weigh on consumption, survey results from the market research group GfK showed.

The forward-looking consumer sentiment index fell to -8.8 in May from revised -6.1 in April. The score was forecast to rise to -3.5.

U.K. shop prices continued to decline in April, data from the British Retail Consortium showed.

The shop price index dropped 1.3 percent year-on-year in April, following a 2.4 percent decrease in March. Both food and non-food prices declined in April.

France’s consumer confidence remained unchanged in April, defying expectations for an easing, preliminary data from the statistical office INSEE showed.

The consumer confidence index reading was 94.0, same as in March. Economists had expected 93.0. In February, the score was 91.

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