Positive earnings from companies including chip maker ASML and consumer product Danone helped European stocks recover today, but gains were capped by concern regarding the Ukraine crisis, slowing growth and bond yields remaining at elevated levels.
The European Stoxx 600 index closed up 0.8 percent, recovering all the losses it suffered in yesterday’s session. Bond yields, which are pressing on stocks today, fell, but are still at high levels on hopes that central banks will tighten monetary policy.
Technology stocks were the top gainers, with ASML shares rising 5.3 percent, following strong sales in the first quarter.
Danone shares jumped 5.8 percent following the French food group said it posted strong quarterly sales growth and maintained its 2022 targets.
Limiting the gains, mining stocks fell 2.6 percent, with Rio Tinto falling 4.8 percent following it announced a drop in iron ore shipments in the first quarter and warned of risks from inflation and shutdowns linked to the pandemic in China and the Ukraine crisis.
The benchmark Stoxx 600 index is down more than five percent so far this year, with technology shares down 20 percent, while commodity-related shares jumped the same percentage, helped by rising prices.
On the Paris Stock Exchange, the CAC 40 index closed up 1.4 percent, ahead of a crucial debate between the presidential candidates, incumbent President Emmanuel Macron and far-right candidate Marine Le Pen, before the run-off that will be held next Sunday. Opinion polls indicate that Macron will win the election.
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