Europe midday: Shares hold gains on upbeat EZ construction data

18th Apr 2024 11:35

(Sharecast News) - European shares were steady on Thursday as investors shrugged off another weak session in the US overnight, with a jump in eurozone construction helping drive late morning sentiment.

The pan-regional Stoxx 600 index was up 0.25% at 499.78 with all major bourses higher. Asian shares were also in upbeat mood, helping fuel sentiment.

"European markets are enjoying a strong start to the trading day, as the bulls seek to step in to rescue what has been a pretty damning April thus far," said Scope Markets analyst Joshua Mahony.

"The risk on sentiment being felt today has helped drive the dollar lower, following a period of gains that saw the greenback reach a five-month high yesterday. What has been notable over recent months has been the outperformance of European indices compared with their US counterparts, as their lofty valuations bring greater profit taking."

"The Federal Reserve is facing elevated inflation pressures and a solid economy, raising the likeliness of a divergence this year as European central banks cut rates ahead of their US counterparts."

In economic news, eurozone construction sparked in February, official data showed on Thursday, up notably on the previous month.

According to first estimates from Eurostat, the statistical office of the European Union, seasonally-adjusted production in construction increased by 1.8% in February in both the Eurozone and wider bloc.

In January, production nudged ahead just 0.2% in the Eurozone and fell 1.2% in the EU.

Driving the increase in February was civil engineering, which reported a 4.1% increase in the Eurozone. Buildings rose 3.5% and specialised construction activities by 1.7%.

Oil prices were below $87, after a 3% slump a day earlier, as the prospects of fewer US interest rate cuts and signs that China's economy was still struggling offset worries around supply amid Middle East tensions between Israel and Iran.

In equity news, Swiss engineering firm ABB surged after reporting flat revenue for the period of $7.87bn, and an 11% rise in operating profit to $1.41bn, ahead of expectations.

Finland's Nokia slipped after missing market expectations for operating profit as net sales fell 19%.

Sartorius Stedim Biotech slumped by 16% after the German firm released first-quarter results.

Shares in takeaway food delivery companies were boosted after Deliveroo reported a positive first-quarter performance in an update on Thursday, as it returned to order growth, alongside a notable increase in gross transaction value (GTV). Just Eat Takeaway and food kit firm HelloFresh were also higher.

Reporting by Frank Prenesti for Sharecast.com