European Shares Rise on Friday

By Investors Hub

European shares have risen on Friday, as investors cheer positive earnings updates from regional banks and the upbeat U.S. jobs data.

While the U.K.?s FTSE 100 Index has advanced by 0.8 percent, the German DAX Index is up by 0.6 percent and the French CAC 40 Index is up by 0.4 percent.

Adidas shares have moved sharply higher. The German sportswear maker affirmed its full-year outlook after reporting forecast-beating earnings for the first quarter, thanks to high-margin ecommerce.

Societe Generale has also rallied after the bank’s first quarter profit fell 26 percent but still beat expectations. The lender managed to significantly improve its risk-based capital ratios with its (risk-weighted asset) management measures.

Miners Anglo American, Antofagasta and Glencore have also risen after Tesla said it expects global shortages of minerals like nickel and copper.

HSBC Holdings has also moved notably higher after the lender beat forecasts with a 31 percent jump in quarterly profit.

On the other hand, Air France-KLM has tumbled after its first quarter loss widened on the back of higher fuel costs and tough price competition.

Reinsurer Swiss Re has also shown a notable move to the downside after its first quarter results came in below expectations.

Shopping centre landlord Intu Properties has also slumped after the company said it expects the remainder of 2019 to be challenging.

In economic news, eurozone consumer price inflation accelerated more than expected in April to its highest level in five months, led by higher energy prices and services costs, preliminary data from Eurostat showed.

The consumer price index rose 1.7 percent year-on-year following a 1.4 percent increase in March. Economists had forecast 1.6 percent inflation.

Producer price inflation eased slightly to 2.9 percent in March from 3 percent in February. Economists had forecast 3 percent price growth.

Separately, a survey showed U.K. service sector activity jumped back into the expansion territory in April. The seasonally adjusted IHS Markit/CIPS U.K. Services PMI Index rose to 50.4 from 48.9 in the previous month.