Earnings buoy shares, Greece weighs on euro
Wednesday, 21 April 2010
LONDON, Apr 20 (Reuters): European shares rose Tuesday, buoyed by corporate earnings optimism, while concerns over Greece's parlous fiscal situation weighed on the euro.
Investors anticipated strong numbers from Goldman Sachs Group Inc, which deflected attention away from the US Securities and Exchange Commission's fraud charge against it.
Sentiment was also lifted by Citigroup reporting its best results since 2007 Monday, while German carmaker Daimler doubled its profit outlook, helping to lift European equities.
"Q1 earnings are coming through on balance better than expected with strong results from Daimler in Europe and Citigroup, and there is a bit of relief on Goldman Sachs," said Bernard McAlinden, investment strategist at NCB Stockbrokers.
The FTSEurofirst 300 index of major European shares rose 0.7 per cent, while the MSCI world equity index gained 0.3 per cent.
Emerging stocks rose 0.9 per cent.
Persistent concerns about Greece's fiscal health weighed on the euro, which dipped 0.1 per cent against the dollar.
The Wall Street Journal reported that European Central Bank Governing Council member Axel Weber said Greece may require assistance of up to 80 billion euros.
Investors anticipated strong numbers from Goldman Sachs Group Inc, which deflected attention away from the US Securities and Exchange Commission's fraud charge against it.
Sentiment was also lifted by Citigroup reporting its best results since 2007 Monday, while German carmaker Daimler doubled its profit outlook, helping to lift European equities.
"Q1 earnings are coming through on balance better than expected with strong results from Daimler in Europe and Citigroup, and there is a bit of relief on Goldman Sachs," said Bernard McAlinden, investment strategist at NCB Stockbrokers.
The FTSEurofirst 300 index of major European shares rose 0.7 per cent, while the MSCI world equity index gained 0.3 per cent.
Emerging stocks rose 0.9 per cent.
Persistent concerns about Greece's fiscal health weighed on the euro, which dipped 0.1 per cent against the dollar.
The Wall Street Journal reported that European Central Bank Governing Council member Axel Weber said Greece may require assistance of up to 80 billion euros.