European shares climb as positive corporate earnings lift risk appetite

By Thomson Reuters Feb 15, 2024 | 2:33 AM

(Reuters) – European shares rose on Thursday as investors digested a slew of better-than-expected corporate earnings and UK’s GDP data, while comments by European Central Bank President Christine Lagarde on disinflation process in the euro zone lifted sentiment.

The pan-European STOXX 600 climbed 0.6% to trade over a two-year high, as of 0815 GMT.

UK’s FTSE 100 also gained 0.6% as Britain’s economy entered a recession in the second half of 2023, fuelling bets that the Bank of England would ease its monetary policy.

Investors drew positive inferences after Lagarde said recent economic data out of the euro zone indicated that inflation is heading back to the target as predicted.

Shares of Renault rose 4.5%. The French automaker reported a slightly lower-than-expected full-year 2023 net profit, but posted margin and revenue gains and offered more cash to investors with a huge increase in its dividend.

Embracer dropped 12.7% to the bottom of STOXX 600 after the Swedish games developer reported a slightly weaker-than-expected operating profit for the October-December period, but maintained its full-year forecast.

(Reporting by Shubham Batra in Bengaluru; Editing by Sherry Jacob-Phillips)