European Markets See Modest Strength

By Investors Hub

European shares are seeing modest strength on Friday as German factory orders data beat estimates and investors digested a raft of mixed corporate earnings results. The upbeat U.S. jobs data has also generated positive sentiment.

German factory orders grew 1 percent in June from May, when they increased by revised 1.1 percent, official data showed. Orders were forecast to grow by 0.5 percent.

Meanwhile, the U.K. economy is “a little bit” better placed to cope with a possible rate hike, Bank of England Deputy Governor Ben Broadbent told BBC radio. “I think there may be some possibility for interest rates to go up a little bit,” Broadbent said.

While the U.K.’s FTSE 100 Index has risen by 0.2 percent, the German DAX Index is up by 0.4 percent and the French CAC 40 Index is up by 0.7 percent.

Royal Bank of Scotland Group has rallied after swinging to a profit in the second quarter, despite a U.S. settlement fine.

German insurer Allianz has edged higher after it agreed to buy a 49 percent stake in LV’s general insurance business.

Meanwhile, reinsurer Swiss Re has fallen after its first-half group net income dropped by a third due to lower premiums and a weaker investment return.

Andritz has plummeted after the Austrian engineering group said it expects slightly lower sales in 2017 compared to 2016.

British homebuilders have also tumbled after reports said the government may review the “help to buy” scheme.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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