Robust earnings support European shares; eyes on BoE rate decision
2022.08.04 10:53
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 3, 2022. REUTERS/Staff
(Reuters) – European shares edged up on Thursday following strong results from a slew of companies, with focus squarely on Britain’s central bank that is expected to lift interest rates by the most since 1995.
The pan-European STOXX 600 index gained 0.1%, taking cues from a 0.4% rise in Asian equities and a strong overnight rally on Wall Street after robust economic data and upbeat corporate outlook.
Credit Agricole (OTC:CRARY) rose 2% as it joined French rivals BNP Paribas (OTC:BNPQY) and Societe Generale (OTC:SCGLY) in announcing a better-than-expected quarterly profit amid record activity at its investment banking division.
Lufthansa rose 5.2% on a return to operating profit in the second quarter, helped by booming demand for air cargo flights.
However, the German airline warned it would offer only around 80% of “pre-crisis” passenger capacity in the third quarter, less than previously planned, amid staffing shortages at airports and airlines.
The Bank of England is expected to lift borrowing costs by a bigger 50 basis points to 1.75%, according to a Reuters poll, as it battles inflation running at a four-decade high.
