European shares edge up as strong earnings overcome China worries

The German share price index DAX graph at the stock exchange in Frankfurt
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, January 18, 2019. REUTERS/Staff

February 1, 2019

LONDON (Reuters) – European shares edged up on Friday as a fresh batch of earnings for the fourth quarter and signs the China/U.S. trade talks were successful helped keep investors risk-on despite a dismal survey on Chinese factory activity.

At 0824 GMT, the STOXX 600 was up 0.2 percent with most European bourses just slightly positive and most sectors also in the black.

Electrolux was the clear top performer in early trading with forecast-beating profits sending shares in the home appliance maker up 8.6 percent.

JCDecaux revenues also cheered investors, boosting the French company’s shares about 7 percent.

There were mixed feelings about results in the banking sector, particularly in Spain with Caixabank falling 5.4 percent on its 2018 results while fellow Spanish lenders Banco Sabadell and BBVA and were down 3.5 percent and flat respectively.

In Germany Deutsche Bank lost another 2.8 percent after its results, failing to recover after sinking during the last session on speculation of a possible merger with rival Commerzbank.

On a more optimistic note, Danske Bank, under investigation for suspicious payments through its Estonian branch, rose close to 4 percent as it unveiled new efforts to step up anti-money laundering efforts via investments of up to 2 billion euros ($2.29 billion).

(Reporting by Julien Ponthus, Editing by Helen Reid)

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