Sun, Oct 22, 2017 - Page 14 News List

Ericsson, Volvo earnings prop up European shares

Reuters, LONDON

Ericsson AB and Volvo AB led European shares higher on Friday with well-received earnings reports during a session where financials and tech stocks also outperformed.

The pan-European STOXX 600 was up 0.2 percent with most European bourses ending the day in positive territory. The index ended the day at 390.13, falling 0.2 percent from last week’s 391 points.

Mobile network gear maker Ericsson soared 8 percent as it said it detected signs of improvement after its restructuring efforts.

Swedish truck maker Volvo was a close second with a 7 percent rise, hitting a record high after beating expectations.

“We’ve had very strong results from Volvo. The main reason for that was from construction and I would say that’s a leading economic indicator, so seeing such strength is very supportive for Europe”, said Rachel Winter, senior investment manager for Killik & Co.

European third-quarter earnings are expected to grow 4.5 percent from the same period last year, an increase of 1.3 percent excluding the energy sector, according to estimates from Thomson Reuters I/B/E/S.

Financials were the biggest support to the STOXX, with banks up 1.2 percent and shares from the technology sector rising an average of 0.6 percent.

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