Skip to Content
Market Update

European Shares Inch Up After Recent Losses

European shares were trading slightly higher early Tuesday, bouncing back from sharp declines yesterday, as investors turned their focus towards some regional corporate earnings.

The FTSE 100 was up 0.1% at 8:08 a.m. London time. The CAC 40 Paris gained 0.2% while the DAX Frankfurt was little changed.

Fresh concerns over political uncertainty in Spain and Italy rekindled fears of debt crisis in the euro-zone, prompting investors to move out of riskier assets on Monday.

Trading today, however, started on a positive note as a host of companies including some industry bellwethers, reported quarterly results, and as data showed downturn in the euro-zone eased in the month of January.

A survey report released by Markit Tuesday showed private-sector activity across the euro-zone, though continued to contract in January, witnessed its smallest decline in 10 months. The purchasing managers' index came in at 48.6 in January, up from 47.2 in December.

Stocks on the move

Most of the stock movement today was earnings related. 

In London, ARM Holdings Plc. jumped over 4% after reporting market-beating fourth quarter results. The chip designer said it has started the new year with a record order backlog and strong opportunity pipeline for licensing.

Textiles manufacturer Low & Bonar Plc. soared over 5% after posting yet another year of profit growth.

Oil giant BP Plc. gained around 2% despite posting a 72% drop in profit for the fourth quarter as the company's chief executive said the company was on track to resume growth in spite of the sharp decline in earnings.

But BG Group Plc. dropped 2% after its adjusted profit for the fourth quarter declined due to taxes and lower LNG prices.

In Germany, Munich Re AG gained 2.5% despite posting a 24% drop in fourth quarter net profit, as the world's largest reinsurer in terms of premium revenue raised its 2012 dividend.

In other corporate news, U.K. cable operator Virgin Media Inc. confirmed talks with Liberty Global Inc. over a possible transaction. Shares of Virgin Media surged over 15% on heels of the news.

French pharmaceutical giant Sanofi SA climbed 1.3% after the drugmaker said it received marketing authorization for its Zaltrap drug to treat Colorectal cancer in the European Union.