Europe finishes on a high note as strong earnings give stocks a boost

Europe finishes on a high note as strong earnings give stocks a boost

Basic resources stocks — with their heavy exposure to China — were among the top performing sectors Tuesday, jumping 1.3 percent following robust GDP data from Beijing. The economy grew at 6.8 percent during the first three months of 2018, topping expectations. Polymetal, ArcelorMittal and Anglo American were among those leading the sectoral gains, all closing up 2 percent or more.

Household goods, however, ended Tuesday in the red, the only sector to do so. Drug giant Reckitt Benckiser slumped towards the bottom of the European benchmark, off 3.2 percent, after Credit Suisse downgraded its rating on the stock to “underperform” from “neutral.”

Looking at individual stocks, Genmab surged to the top of the index after reporting higher than expected sales of the drug Darzalex in the first quarter. Shares of Genmab jumped 8.74 percent by the close.

Sweden’s Intrum Justitia soared 8 percent after it reportedly filed a binding bid for Intesa Sanpaolo‘s debt collection unit. The deal, which is set to be reviewed by the Italian bank on Tuesday, could rid the lender of around $13 billion of bad debt. Shares of the Italian lender closed up almost 1 percent.

Elsewhere, Associated British Foods rose over 4 percent after reporting its latest earnings, which saw the company maintain its full-year outlook.

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