Europe open: Shares up ahead of US earnings; Reckitt slumps on lawsuits

29th Jul 2024 07:47

(Sharecast News) - European shares started the week sharply higher ahead of earnings from US tech giants later in the week and a policy decision from the US Federal Reserve.

The pan-regional Stoxx 600 index was up 0.46% to 515.46 in early deals. Apple, Microsoft, Amazon and Meta are all scheduled to report along with McDonald's, Boeing, PayPal, Chevron and Exxon Mobil.

Inflation data from the eurozone is also due out this week, while Fed policymakers in Washington will also make a decision on interest rates, with guidance expected on when they will make a cut.

"While no change is expected at the Federal Reserve meeting this week, the odds are now strongly in favour of a cut in September, with more recent economic data including Friday's personal consumption expenditures (PCE) adding to investors' conviction that one or even two more could follow before the end of the year," said Interactive Investor head of markets Richard Hunter.

"The PCE rose 0.1% month on month, annualising to 2.5%, both in line with estimates. The non-farms payroll figure on Friday will be the next set of important data, with 185000 jobs expected to have been added in July, compared to 206000 the previous month."

In equity news, shares in Reckitt Benckiser slumped as almost 1,000 lawsuits were filed against Abbott Laboratories and the Enfamil formula maker.

A jury on Friday found that Abbott's specialized formula for premature infants caused an Illinois girl to develop a dangerous bowel disease, ordering the healthcare company to pay $495m in damages.

Heineken shares fell as the Dutch beverage maker announced an €874m write down of its investment in China Resources Beer and but also lifted full-year guidance.

Philips surged after second-quarter results beat forecasts.

Eni shares were up as RBC raised the stock to "outperform" from "sector perform".

Merck shares were up 3.6% the German company raised its forecast for the group on the back of a strong operating performance at its healthcare and electronics units.

Reporting by Frank Prenesti for Sharecast.com