European stocks climbed on Wednesday morning as investors put the spread of the new coronavirus under microscope while observing fresh economic data.
The pan-European Stoxx 600 increased 0.5% by mid-morning having earlier notched a new record high. Basic resources and household goods added 0.8% to lead gains as most sectors and major bourses entered positive territory.
European shares were also strengthened slightly by a stronger euro, though the common currency edged up 0.1% to trade at around $1.0802 on Wednesday morning.
Puma shares jumped 8.3% after the German sportswear brand beat fourth-quarter sales and earnings expectations, and said it still hopes to reach 2020 targets despite an expected first-quarter hit from the coronavirus outbreak.
Deutsche Telekom on Wednesday forecast that growth in its core earnings would slow to 3% this year after a strong fourth quarter. Europe’s largest mobile operator projected adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) hit 25.5 billion euros ($27.5 billion), missing analyst expectations. Deutsche Telekom shares gained 3% in early trade.
At the bottom of the European benchmark, Ageas shares fell 5.7% after the Belgian insurer missed full-year earnings expectations and warned of the direct impact of claims linked to the coronavirus outbreak.
Italy’s Campari slipped 2.2% after reporting weak fourth-quarter earnings and downbeat 2020 guidance, while Royal Mail dropped 4.1% after Liberum cut its price target for the stock on the grounds that 2024 transformation targets are undeliverable.
source: CNBC
