European Shares Flat as Investors Evaluate Earnings

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European Shares Flat as Investors Evaluate Earnings

European shares were flat, as investors weighed earnings from firms including Akzo Nobel and GlaxoSmithKline Plc, as an index of consumer confidence dropped expectedly.

Akzo Nobel ascended 3.9% after reporting second-quarter profit that surpassed expectations. Outotec Oyj soared the most in more than two years against the background of reports that Weir Group Plc may be intending to acquire the maker of mining equipment. GlaxoSmithKline lost 4.7% after its second-quarter earnings were below analysts’ projections.

Deutsche Bank AG dropped after reports by the Wall Street Journal suggested the bank overseers faulted some of the company’s businesses in the US last year.

The Stoxx 600 added 0.1% to 342.86at the close of trading, trimming earlier gains of as high as 0.4%. The equity index added 1.3% yesterday, bouncing back from three days of declines, as firms including Actelion Ltd to ARM Holdings Plc forecast better financial results.

“You’ve had some very good earnings released so far. The focus has shifted quickly to economic data from Europe and the U.S. It’s been mixed but still slightly to the upside. When we look across the market, it seems calm and the macro picture is still supporting equities,”Peter Garnry of Hellerup, Denmark-based Saxo Bank A/S told Bloomberg.

Data released this month indicated that euro-zone retail sales surged in May from the prior year, as car registrations climbed in June. A US report showed jobless benefit applications dropped in July 12.

National benchmark gauges climbed in 15 of the 18 markets in Western Europe. France’s CAC 40 added 0.2%, DAX of German added 0.2%, while the FTSE 100 of UK soared less than 0.1%.

According to Reuters, euro-area’s blue-chip Euro STOXX 50 gauge dropped 0.2% at 3,158.64 points.

ECB president Mario Draghi said the central bank would not hesitate to use all available tools in response to a further slide in inflation.

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