By Sruthi Shankar
(Reuters)-European equities peaked again on Monday. This was driven by trading activity and the strong performance of Europe’s largest bank, HSBC, and the rebound in Asian equities also helped make a bright start in August.
The Pan-European Index rose 0.6% to a record 464.5 points. Retailers, car makers and miners are among the top performers.
British aeronautical engineer Meggitt (LON :) US industrial firm Parker-Hannifin (NYSE :) jumped 58.2% to a record high in life after announcing that it would buy a British rival in a deal worth $ 8.76 billion.
In particular, UK asset management service provider Sanne Group surged 7.9% after saying it could take a bid from fund servicer Apex Group.
The UK midcap index rose 0.6% and top-cap stocks rose 0.8%. ()
In terms of earnings, Asia-focused lender HSBC exceeded its pre-tax earnings forecast for the first half and rose 0.5% after resuming dividend payments.
French insurer Axa saw a 2.5% increase after a 180% surge in net profit in the first half. Meanwhile, German rival Allianz (DE :) fell 6.4% after US regulators launched an investigation related to Allianz Global Investors’ Structured Alpha Funds.
According to Refinitiv IBES data, 67% of more than half of the STOXX 600 companies that have reported second-quarter results so far exceed their profit estimates.
“Although it reached a record high after the first quarter results, the range of positive EPS revisions in Europe remains very strong, both in absolute terms and compared to its peers,” said Europe. Stock strategist Morgan Stanley (NYSE :) I said in a memo. “Europe is currently seeing the highest earnings revisions of all global regions.”
Meanwhile, research shows that manufacturing activity across the euro area continued to grow at a tremendous pace in July, but supply bottlenecks caused input costs to skyrocket.
Optimistic views on European earnings and economic resumption are the sixth consecutive month of benchmark STOXX 600 at the end of July, despite concerns over inflation, a surge in virus cases in Asia, and crackdowns on major regulations in China. Helped to rise.
Senior Plc, a UK jet and auto parts supplier, surged 4.3% year-on-year after reporting profits in the first half.
Piamelrose increased by 6.2% and Rolls-Royce (OTC :) increased by 3.5%.
Heineken (OTC :), the world’s second-largest brewer, warned that rising commodity costs would eat up profits, although it rose 0.6% after reporting higher-than-expected earnings in the first half.
German car maker Daimler (OTC :) rose 2.2% after Goldman Sachs (NYSE :) added shares to the conviction list.
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M & A rush, earnings push European stocks to new highs Reuters
https://www.investing.com/news/stock-market-news/ma-frenzy-earnings-power-european-stocks-to-new-highs-2575595 M & A rush, earnings push European stocks to new highs Reuters