European Stocks Hit Record High With Eyes on Earnings, Ukraine
European stocks advanced to a record high as a slate of corporate earnings boosted sentiment, while investors monitored negotiations around a peace deal in Ukraine.
The Stoxx 600 Index rose 1% by the close, surpassing the all-time peak hit last week. Anheuser-Busch InBev jumped 8.6% after earnings beat expectations as increased marketing drove sales of its biggest brands and the key US market showed signs of recovery. Construction and insurance shares outperformed, while media stocks were the biggest laggards.
Banco Santander SA gained 3.1% as it said it would pay a total dividend on last year’s profit of 21 euro cents per share, an increase of almost 20%, reflecting a record year.
On the other hand, Novartis AG fell 3.7% as the Sandoz family sold a roughly 1.2% stake in the Swiss pharmaceutical group for 2.6 billion Swiss francs ($2.9 billion).
Stellantis NV sank 4.0% after it forecast little improvement in profitability this year as the automaker struggles to revive flagging sales while searching for a new chief executive officer. BP Plc shares fell 1.4% as it sharply cut buybacks and announced a major pivot back to its core oil and gas business.
European stocks are on track to outperform US peers this quarter by the most since 2015, as investors bet on an improving economic outlook, potential fiscal reform in Germany and a ceasefire in Ukraine. Still, the pace of the rally has prompted some to turn more cautious, increasing the appeal of safer parts of the market.
Source : Bloomberg
