European shares propped up by gains at BT and Repsol – Reuters

This post was originally published on this site

(ADVISORY- Reuters plans to replace intra-day European and UK
stock market reports with a Live Markets blog on Eikon – see cpurl://apps.cp./cms/?pageId=livemarkets
for site in development. See the bottom of the report for more
details) Updates prices, adds details)

* FTSEurofirst 300 rebounds, still down nearly 10 pct in
2016

* BT shares rise after stronger than expected earnings

* Span’s Repsol up after profits fall less than expected

* Centrica lead losers on share placement plans

By Sudip Kar-Gupta and Danilo Masoni

LONDON/MILAN, May 5 European stock markets
steadied on Thursday, buoyed by encouraging earning updates by
firms including telecoms group BT and oil company Repsol.

The pan-European FTSEurofirst 300 index rebounded
slightly to stand 0.2 percent higher after falling 1.2 percent
in the previous session to its lowest level in almost a month.

The FTSEurofirst has lost around 10 percent so far in 2016,
hit — like other global stock markets — by worries about a
slowdown in China, the world’s second-biggest economy, and
uncertainty over future U.S interest rate rises.

“Lower prices are starting to attract bargain hunters,” said
Markus Huber, a trader at City of London Markets Limited.

“However, overall sentiment remains negative as uncertainty
concerning global growth, a potential U.S. rate hike in the
third quarter and disappointing corporate earnings continue to
take a toll on markets,” he added.

BT was one of the best-performing stocks in the
region, rising 3.1 percent after the phone group reported a
better-than-expected 6 percent rise in full-year earnings.

Firmer oil prices also lifted the shares of major oil
producers, with Tullow Oil up 3.5 percent.

Spanish oil major Repsol climbed 4.7 percent after
posting a decline in first-quarter profits which was not as bad
as some had expected.

“A better than expected performance from the downstsream
driven by petrochemicals, alongside the upstream business
turning positive for the first time in a while, both contributed
to the strong performance,” analysts at RBC said in a note.

On the downside, Centrica fell 9.7 percent, making
it the top loser on the FTSEurofirst 300, after the British
energy supplier said it would sell shares to raise funds, partly
to cut debt.

Today’s European research round-up

ADVISORY- Reuters plans to replace intra-day European and UK
stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets
for site in development). In a real-time, multimedia format
from 0600 London time through the 1630 closing bell, it will
include the best of our market reporting, Stocks Buzz service,
Eikon graphics, Reuters pictures, eye-catching research and
market zeitgeist. Breaking news and dramatic market moves will
continue to be alerted to all clients and we will continue to
provide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions or
feedback on this, please email mike.dolan@thomsonreuters.com.

Mike Dolan, Markets Editor EMEA.

(Editing by Mark Trevelyan)