European Shares Ascend to a Six-year Peak

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European Shares Ascend to a Six-year Peak

European shares soared to a six-year peak as firms such as ThyssenKrupp AG and Airbus Group posted better-than-estimated earnings.

ThyssenKrupp added 4.1% after the largest steel maker in Germany adjusted upwards its full-year earnings outlook. Airbus increased 6.2%. Pandora A/S surged 8.1% after raising its sales forecast. Telkom Italia SpA lost 5.2% as revenue for the first quarter missed projections.

The Stoxx Europe 600 Index advanced 0.3% to 341.89 at the end of trading in London. The gauge has climbed 7.7% from this year’s plunge on February 4 as deals increased and European Central Bank President Mario Draghi said the regulator intended to intervene in June.

As Wall Street Journal reports, the FTSE 100 index of UK climbed to the highest close since January 2000, as DAX of Germany added 0.5 at the close of trading, nearing a record high. The pan-European Stoxx 600 was up 0.3%.

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“Despite the good run we’ve seen in European stocks this year and the year before, I’m still positive they will go higher. European companies are in very good shape. Companies with good results are going up, while those with bad numbers are going down,” Herbert Perus of Vienna-based Raiffeisein Capital Management told Bloomberg.

In Germany, the measure of investor and analyst sentiment worked out by the ZEW Center for European Economic Research dropped to 33.1 in May from 43.2 last month, also missing forecasts.

CAC 40 of France and FTSE 100 rose 0.3% each. National blue-chip shares indexes declined in 10 of the 18 markets in Western Europe today.

ThyssenKrupp soared to 22.14 euros. The firm said its profit for one-off items would almost double from 586 million euros last year, up from a previous outlook of 1 billion euros. The steelmaker reported that earnings for the first quarter jumped 269 million euros from a loss of 129 million euros the previous year.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com