Eurozone Indices Advance
Stock indices in Europe moved forward on Monday morning, as oil firms, energy prices and corporate earnings increased.
Tuesday, November 11, 2014 - 00:00
Corporate earnings show third quarter advance
Several European companies posted better-than-anticipated third quarter earnings which helped investor sentiment, Bloomberg reported. Denmark’s Carlsberg A/S rose 2.7%, the Netherlands’ Nutreco NV added 15%, while the UK’s Lonmin gained 3.8% to reach its highest mark in seven weeks.
Thirteen out of 18 national benchmark indices in Europe achieved gains on Monday. Nearly 70 companies in the Stoxx Europe 600 will report earnings this week. Analysts forecast 7.5% growth this year.
“We’ve had strong earnings compared with okay macro numbers,” Henrik Drusebjerg, chief strategist at Carnegie Investment Bank AB in Copenhagen, told Bloomberg. “I’m still a moderate optimist. We see a slow but improving world economy, which is strongest in the US, but there are signs of things getting better on a global scale. My main concern is Europe, but then again, [European Central Bank President Mario] Draghi seems headed towards quantitative easing and if necessary, he will do more.”
Items to watch in the week ahead
There will be a flurry of activity this week that could impact investors’ positions on the market, according to The Wall Street Journal. Federal Reserve Bank of Boston President Eric Rosengren will give a lecture at Washington and Lee University Monday evening, during which he may comment on the Fed’s interest rate hike outlook.
Wednesday will see the release of September industrial production data in the Eurozone. Economists hope the market will have recovered from a weak August. Additionally, the Bank of Korea’s Monetary Policy Committee will meet and make a decision on measures to weaken its currency, the won.
On Friday, the Group of 20 summit and finance minister meeting will commence in Brisbane, Australia, while the Eurozone’s October final consumer prices index will be released.
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