European shares rise, shrugging off disappointing earning updates

FAN Editor
The German share price index, DAX board, is seen at the stock exchange in Frankfurt
The German share price index, DAX board, is seen at the stock exchange in Frankfurt, Germany, November 1, 2017. REUTERS/Staff/Remote

November 7, 2017

MILAN (Reuters) – European shares rose on Tuesday buoyed by exuberant markets in New York and Asia with early sluggishness in the euro boosting the export-oriented DAX <.GDAXI> index to a new record high.

A rebound in banks and gains among commodity stocks underpinned the broader market, sending the pan-European STOXX 600 index <.STOXX> up 0.2 percent by 0819 GMT and helping offset a number of disappointing earning updates including from BMW <BMWG.DE>.

The German carmaker fell 2 percent after its third-quarter earnings fell 5.9 percent, near the low-end forecast in a Reuters poll, due to upfront costs for new technologies and models. The world’s second-largest luxury automaker however slightly lifted its outlook for pretax profit this year.

Its fall was more than offset by broad-based gains that sent the DAX, the German country benchmark index, up 0.3 percent.

On the STOXX 600, the biggest fallers were shares in chipmaker Dialog Semiconductor <DLGS.DE>, down 6.1 percent following a cautious outlook for the fourth quarter.

Also under pressure following their updates were shares in Danish shipping group A.P. Moller Maersk <MAERSKb.CO>, Siemens Gamesa <SGREN.MC> and London-listed security group G4S <GFS.L>.

The FTSE <.FTSE> was up 0.1 percent.

(Reporting by Danilo Masoni, Editing by Helen Reid)

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