Home ›› 02 Feb 2023 ›› Stock
European shares edged higher on Wednesday as industrial stocks gained, while investors awaited the outcome of the U.S. Federal Reserve’s first policy meeting this year.
The pan-European STOXX 600 (.STOXX) was up 0.3% by 0943 GMT, after clocking its biggest January gain since 2015 at 6.7%, on hopes of better-than-expected corporate earnings and signs of economic resilience.
A survey by S&P Global showed that the downturn in euro zone manufacturing activity eased further last month, price pressures alleviated and the fall in demand moderated, reported Reuters.
Industrials stocks (.SXNP) were among the top sector performers, up 0.8%.
Sweden’s Husqvarna (HUSQb.ST) jumped 5.6% to the top of the STOXX 600 after the Swedish gardening power tools maker reported better-than-expected fourth-quarter sales, while Danish drug maker Novo Nordisk (NOVOb.CO) rose 0.6% on strong 2023 sales growth expectations.
BBVA (BBVA.MC) gained 1.4% after the Spanish bank’s fourth-quarter net profit rose 17.6% year-on-year, thanks to a strong performance in Mexico.
Swiss drugmaker Novartis (NOVN.S) fell 1% as analysts pointed to weakness in its key drugs Cosentyx and Zolgensma.
Earnings growth estimates for STOXX 600 companies during the fourth quarter have halved to 7.3% from 14.5% at the start of January, Refinitiv data showed on Tuesday.
