European Stocks Close On Firm Note On Results

(RTTNews) - European stocks closed higher on Wednesday, reacting to some strong earnings updates, and slightly easing geopolitical concerns following Ukraine and the U.S. agreeing on a minerals deal.

The draft minerals deal to turn over Kyiv's revenue from some of its mineral resources to Washington, says that the United States wants Ukraine to be "free, sovereign and secure."

The deal is key for Ukraine in securing continued U.S. support for its fight against Russia.

According to reports, the agreement could be signed as early as Friday when Ukrainian President Volodymyr Zelensky visits Washington to meet his American counterpart.

Mining stocks gained as copper prices climbed higher. Bank stocks had a good session, contributing significantly to markets' upside.

The pan European Stoxx 600 climbed 0.99%. The U.K.'s FTSE 100 closed 0.72% up, while Germany's DAX and France's CAC 40 gained 1.71% and 1.15%, respectively. Switzerland's SMI edged up 0.13%.

Among other markets in Europe, Austria, Belgium, Finland, Iceland, Ireland, Norway, Poland, Portugal, Spain, Sweden and Turkiye ended with sharp to moderate gains.

Greece and Netherlands posted modest gains, while Denmark and Russia closed notably lower.

In the UK market, Convatec Group shares gained nearly 5%. The company reported that its preliminary profit before income taxes for the year ended 31 December 2024 increased to $245.9 million from $167.4 million in the previous year. Annual net profit was $190.5 million or 9.3 cents per share, higher than prior year's $130.3 million or 6.3 cents per share.

The company reiterated its guidance for double-digit adjusted earnings per share growth for 2025. It continues to anticipate 5-7% organic growth in non-InnovaMatrix 3 revenues, which accounted for 96% of Group revenue in fiscal year 2024.

Hiscox ended almost 5% up. Lloyds Banking Group, Entain, Barclays Group, Standard Chartered, Beazley, Smith & Nephew, Antofagasta, Anglo American Plc, Croda International, Aviva, Prudential and Natwest Group gained 3 to 4.5%.

Ashtead Group, Scottish Mortgage, Polar Capital Technology, Whitbread, Rolls-Royce Holdings, Associated British Foods, Fresnillo, Legal & General, St. James's Place, IHG, Phoenix Group Holdings, Howden Joinery, M&G and Glencore moved up 2 to 3%.

Hikma Pharmaceuticals ended more than 6% down. Relx, Persimmon, Intertek Group, BAE Systems, BP, Unite Group, Pearson, GSK, Centrica and Schrodders lost 1 to 2.5%.

In the German market, Siemens Energy climbed more than 8%. Fresenius rallied 6.6%. HeidelbergCement, Deutsche Bank, Sartorius, Siemens and MTU Aero Engines gained 3 to 4%.

Munich RE closed nearly 5% up. The reinsurance major reported net earnings of 991 million euros for the fourth quarter, down 1.9% from last year's 1.011 billion euros. Earnings per share, however, edged up 0.4% to 7.54 euros from 7.51 euros last year.

E.ON gained about 3% after reporting fiscal 2024 net income of 4.5 billion euros compared to 517 million euros, last year. Earnings per share was 1.73 euros compared to 0.20 euros.

Hannover Rueck, Brenntag, Allianz, Deutsche Boerse, Deutsche Post, Fresenius Medical Care, BASF, RWE, Bayer and Rheinmetall gained 1.5 to 3%.

Deutsche Telekom ended lower by more than 3% despite the company's turnaround results. A lower than expected earnings forecast for 2025 is contributing to the stock's decline. The company expects that its adjusted earnings before interest, taxes, depreciation and amortization after leases will rise about 4.5% this year to 44.9 billion euros, less than the expected earnings of 46.9 billion euros.

Deutsche Telekom reported fourth quarter net profit of 4.182 billion euros compared to a net loss of 1.035 billion in the same quarter last year.

In the French market, ArcelorMittal gained 5.4%. Schneider Electric, Teleperformance, Saint-Gobain, Accor, LVMH, Legrand, Renault and Kering climbed 2 to 3.4%.

Pernod Ricard, Airbus Group, AXA, Societe Generale, Michelin, Vinci, Credit Agricole, Safran, Veolia and L'Oreal closed higher by 1 to 2%.

Stellantis ended nearly 4% down. The company reported a 70% drop in full-year earnings to 5.52 billion euros, from 2023 earnings of 18.63 billion euros. Earnings per share were 1.84 euros, down 69% from 5.94 euros a year ago.

Stellantis' adjusted earnings per share were 2.48 euros, compared to prior year's 6.42 euros. Adjusted operating income fell 64% from last year to 8.65 billion euros, and adjusted operating income margin was down 730 basis points year-over-year to 5.5%.

Vivendi closed lower by about 3%. STMicroElectronics and Capgemini, both ended more than 2% down. Danone closed modestly lower. The company reported fiscal 2024 net income of 2.02 billion euros compared to 881 million euros in the previous year. Earnings per share was 3.13 euros compared to 1.36 euros.

On the economic front, survey data published by the market research group GfK and the Nuremberg Institute for Market Decisions said German consumer sentiment is set to fall in March on weaker income expectations and willingness to buy.

The forward-looking consumer sentiment index unexpectedly fell to -24.7 in March from -22.6 in February. The reading was expected to improve to -21.6.

The income expectations index dropped 4.3 points to -5.4 in February. The last time such a lower value was measured in January 2024. Higher prices and uncertain economic and political situation damped income outlook.

However, consumers were somewhat more positive about economic outlook. The index measuring general economic conditions for the next twelve months rose 2.8 points to 1.2.

France's consumer confidence continued its recovery trend for the second straight month in February, monthly survey data from the statistical office INSEE showed.

The consumer sentiment index rose to a four-month high of 93 in February, as expected, from 92 in the previous month. However, the index remained well below its long-term average of 100.