(Sharecast News) – European shares rallied by midday as investors turned their attention to US retail sales data later in the day and digested another earnings dump regionally and across the Atlantic.
The pan-European Stoxx 600 index was up 0.29%, with regional bourses largely higher. Results are coming in later from Bank of America, Morgan Stanley, Bank of New York Mellon and PNC Financial, along with Lockheed Martin and J.B. Hunt.
“After a spritely start to the week there is set to be a bit more wariness on Wall Street ahead of more corporate results, with financials in focus including Bank of America and Morgan Stanley,” said Hargreaves Lansdown analyst Susannah Streeter.
“JP Morgan set a high bar on Friday with results beating expectations. Bank of America is expected to report some robust numbers given that the consumer banking business remains strong, and credit conditions haven’t markedly deteriorated.”
“With inflation trotting down closer to target, and economic indicators showing resilience, there will be hopes less money will have to be set aside for bad loans.”
In other equity news, shares in online grocer and logistics technology company Ocado surged after the company swung to an underlying first-half profit.
Novartis shares were up after the drugmaker raised its full-year earnings guidance and mapped out the planned spin-off of its generic medicines division Sandoz for early in the fourth quarter and a $15bn share buyback to be completed by the end of 2025.
Swedish diversified group Dometic also soared after strong second-quarter earnings, while Nel shares powered to the top of the index as the Norwegian hydrogen tech specialist received a ‘buy’ rating from Goldman Sachs.
Tele2 shares slumped almost 12% despite the Swedish mobile telecoms provider positing better-than-expected quarterly results.
Reporting by Frank Prenesti for Sharecast.com