European shares rise as Unilever lifts consumer stocks
However, technology stocks remained in focus
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EUROPEAN shares rose for a third straight session on Tuesday (Jul 28), as strong results from Unilever helped lift consumer-focused stocks higher and offset weakness elsewhere as earnings season picked up pace.
The pan-European Stoxx 600 index gained 0.4 per cent to 646.89 at close. Investor sentiment towards consumer-facing stocks, both staples and discretionary, improved following robust results.
The Stoxx 600 food and beverages index and personal and household goods index gained 2.8 per cent and 2.3 per cent respectively, and were among the top sectoral gainers on the index.
Unilever jumped 8 per cent, logging its biggest one-day gain in four years, after the consumer goods group beat second-quarter sales growth estimates. The gain also helped London’s FTSE 100 advance 0.8 per cent.
Mercedes-Benz added 2.9 per cent after the German automaker reported a 22 per cent rise in quarterly operating profit.
Luxury stocks got a boost after LVMH reported a 3 per cent rise in quarterly sales. Though its shares were flat, the broader European luxury index edged up 1.5 per cent.
“The underlying fundamentals of economies are still pretty strong, broader earnings growth has actually been better than expected both in the US and in Europe,” said Nicholas Brooks, head of economic and investment research at London-based ICG.
Technology stocks remained in focus after the Information reported China had started manufacturing domestically developed immersion deep-ultraviolet lithography machines, injecting fresh concerns about competition into the AI trade.
This comes in a week packed with US Big Tech earnings that are crucial to gauge whether the AI story still has room to run.
Among other movers, Barclays lost 4.8 per cent despite reporting a 17 per cent rise in first-half profit that beat forecasts, as analysts said its equities performance undershot market expectations boosted by Wall Street rivals’ bumper quarter.
Italy’s Saipem slid 8.9 per cent after the oil and gas contractor lowered its expectations for 2026 core earnings to reflect costs linked to the Middle East crisis.
Bechtle jumped 14.8 per cent to the top of the Stoxx 600 after the German IT firm raised its full-year outlook.
Energy stocks were the biggest percentage decliners, down 2.4 per cent, as oil prices extended their slide on optimism around another US-Iran deal after Washington paused its strikes over the weekend.
The policy statement from Federal Reserve Chair Kevin Warsh will be in focus on Wednesday.
The US central bank is expected to hold rates steady at this meeting, but markets are pricing in one 25-basis-point hike by the end of this year, according to LSEG-compiled data. REUTERS
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