European stock markets extended modest gains in Thursday’s trade as quarterly results from banking giants such as Barclays, Deutsche Bank and BBVA beat analysts’ estimates, helping ease concerns about continued turmoil at some of the country’s banks. region in the United States.
Britain’s Barclays today confirmed its guidance after announcing results that beat analysts’ estimates. For its part, Germany’s Deutsche Bank announced its highest earnings since 2013, with profits that turned out to be better than market forecasts. Spain’s BBVA also reported better-than-estimated earnings, bolstered by strong growth in net profit.
The results come as concerns about US regional banks have resurfaced in recent days, with shares of First Republic Bank falling nearly 30% yesterday after plunging 50% on Tuesday. Bank of America has announced significant layoffs, while it will also continue with asset sales to strengthen its balance sheet.
Across the board, the pan-European Stoxx 600 index gained 0.1% to 463.65 points.
Germany’s DAX also rose 0.1% to 15,806.03, France’s CAC 40 gained 0.3% to 7,489.54, while Britain’s FTSE 100 was little changed at 7,853.13.
In the region, Italy’s FTSE MIB gained 0.2%, while Spain’s IBEX 35 gained 0.1%.
Outside the banking sector, consumer goods giant Unilever easily beat analysts’ sales estimates in the latest quarter, while pharmaceutical company AstraZeneca also reported earnings and revenue that beat forecasts.
At the same time, investors are preparing for preliminary data that Eurostat will announce on Friday on the course of European GDP in the first quarter. This will be the first reading ahead of the European Central Bank’s monetary policy meeting next week. From today the ECB enters a so-called “silent period” ahead of the May 4 meeting which is expected to lead to another increase in European interest rates.