Stocks in Europe were holding slightly higher come midday, buoyed by a strong quarterly update from one of the largest US lenders.
“European stocks are charging higher after the US earning season kicked off on the right foot. US banks are often considered a proxy for the broader economy. As a result, their earnings are strong drivers of sentiment,” market analyst for the UK and EAMA at Oanda.
“The upbeat numbers served to reinforce expectations of a strong US economic recovery. If the world’s largest economy is performing well, this is good news for the global economy and risk sentiment.”
As of 1228 GMT, the benchmark Stoxx 600 had added 0.33% to 437.99, the Dax had risen 0.27% to 15,250.86 and the Cac-40 had advanced 0.24% to 6,223.49.
In the background meanwhile, Bank of America’s just released and stronger-than-expected first quarter earnings report and upbeat outlook was feeding the risk-on mood.
Back on the Continent, Carlsberg was a top gainer after analysts at JP Morgan hiked their target price for the company’s shares to DKK 1,230.0, citing its “outperformance” in ‘beyond beer’ segments China strength and stability in Russia.
But it was shares of Anheuser Busch Inbev that were topping gainers on the Stoxx 600, with positive read-across from Carlsberg helping to lift the stock price towards technical resistance at their end-2020 highs.
On the mergers and acquisitions front, DNB, Norway’s largest lender, said it had inked an agreement to take over its smaller rival, Sbanken, for NOK11.1bn.
GlaxoSmithKline shares were also on the move, reversing early losses triggered by news that it had halted a trial for its cancer treatment Feladilimab.
According to the Financial Times, hedge fund Elliott had built up a multi-billion pound stake in the drugmaker.
Shares of Deliveroo were down 3% after the company posted lacklustre guidance for the first quarter.
There was little fresh news on the economic front for investors to chew on, with final estimates for harmonised consumer prices in France and Germany for the month of March both printing in line with initial estimates.
Further afield nonetheless, investors were monitoring the news around the ongoing tensions on the Ukraining-Russian border.
