FX.co ★ European Shares Inch Higher On Earnings

European stocks saw a slight uptick on Friday, following comments from European Central Bank policymaker Yannis Stournaras who predicts three potential rate cuts in 2024. Stournaras's forecasts, based on the latest growth and inflation data, suggest the scenario with three rate cuts is the most probable.

Positive earnings reports and indications of growth in the U.K. services sector also bolstered investor confidence. According to S&P Global's final data, the U.K. service industry experienced its fastest expansion in almost a year, driven by a resurgence in order placement. The services purchasing managers' index saw a jump from 53.1 in March to 55.0 in April, exceeding the preliminary score of 54.9.

Continental indicators painted a different picture - falling French industrial production in March did not impact market sentiment adversely. The composite European STOXX 600 index increased a slight 0.3% to 504.83 after a decrease of 0.2% on Thursday. Meanwhile, Germany's DAX rose 0.4%, France's CAC 40 added 0.6%, and the U.K.'s FTSE 100 saw a 0.4% uptick.

News from corporate Europe shows a dynamic environment, Germany's home and personal care products company Henkel AG & Co. KGaA saw a 7.4% jump after revising its 2024 sales and earnings projections upwards. Conversely, Daimler Truck Holding's shares fell 5% in light of a decrease in Q1 global sales. Packaging and bottling machinery producer Krones experienced a 1.6% dip, even though it posted a Q1 profit increase and reaffirmed its 2024 outlook.

In the banking sector, Credit Agricole - France's second-largest public bank - saw a 3.6% surge after reporting a massive 55% increase in Q1 net profit, easily surpassing expectations. Competitor Societe Generale's stocks jumped 4.4% as it reaffirmed guidance despite reporting a lower-than-forecasted 22% decline in Q1 net income.

In the U.K., mining titan Anglo American saw a 3% surge on rumors that commodities group Glencore might submit a rival bid for the company. Meanwhile, Trainline - a digital platform for procuring rail and bus tickets - saw an 8% rise after announcing yearly earnings increases and plans for a larger 12-month share buyback. Publishing company Future's stocks also rose 2.7%, following the appointment of Sharjeel Suleman as CFO.