Positive start for European indices
European stock indices had a positive start to Thursday’s trade following a mixed close yesterday. Sentiment improved from Wednesday’s session, which saw some divergence across sectors as the second-quarter earnings season ramped up.
European indices were also responding to moves across Wall Street. US stock indices fell sharply after the Federal Reserve Chair Jerome Powell’s press conference. But they then recovered into the close and were sharply higher this morning following blow-out second quarter results from Meta Platforms and Microsoft, released after last night's close.
Source: TN Trader
Among the highlights this morning, energy giant Shell reported better-than-expected earnings. Despite a general decline in oil and gas prices over the quarter, Shell managed to outperform thanks to operational efficiency and trading performance. In addition to the earnings beat, Shell confirmed plans for a share buyback, a move welcomed by investors looking for continued capital returns amid volatile energy markets.
Also reporting on Thursday was consumer goods heavyweight Unilever. The company posted a 3.8% rise in underlying sales for the second quarter, edging past the 3.6% forecast from a company-compiled poll. More than half the growth was attributed to price increases, particularly in personal care, beauty, and well-being segments.
Brands such as Hellmann’s mayonnaise and Dove soap continued to see robust demand, despite inflationary pressure on consumers.
UK-based Standard Chartered also reported strong quarterly profits and announced a share buyback. And Rolls-Royce jumped 9%, taking the stock to yet another all-time high, following the release of its half-year results.