European Shares Rebound on Strong Earnings, Led by AI-Driven Demand for ABB

European shares rise after four-day drop as ABB shines

July 17 (Reuters) - European shares rose on Thursday after four consecutive sessions of losses, supported by strong quarterly results from Switzerland's ABB and optimism over a potential trade deal between the United States and the European Union. The pan-European STOXX 600 index (.STOXX), opens new tab up 0.8% as of 0718 GMT. ABB (ABBN.S), opens new tab jumped 8.2% after the engineering firm posted record quarterly order intake, driven by strong U.S. demand and for products used in data centres to support artificial intelligence. Shares of rivals Siemens (SIEGn.DE), opens new tab and Schneider Electric (SCHN.PA), opens new tab added 3.6% and 5.8% respectively. The three firms were among the top boosts to the European benchmark index. European chipmakers also recouped some losses from the previous session as TSMC (2330.TW), opens new tab, the world's main producer of advanced AI chips, posted record profit in the second quarter. ASML (ASML.AS), opens new tab rose 1.7% following 11% drop on Wednesday. In trade, EU's trade chief Maros Sefcovic headed to Washington on Wednesday for tariff talks, and is expected to meet U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, an EU spokesperson told Reuters. Meanwhile, investors awaited for clarity on U.S.-EU trade talks as the bloc readied retaliatory measures if negotiations with Washington failed. On Wednesday U.S. President Donald Trump eased market anxiety after denying reports that said was planning to fire Federal Reserve Chair Jerome Powell soon. He confirmed he floated the idea with Republican lawmakers and renewed his criticism of the Fed chief for not cutting interest rates. Among other stocks, Evolution (EVOG.ST), opens new tab gained 6.5% after the Swedish gaming technology company reported its second-quarter results. (This story has been refiled to correct the day to Thursday, not Wednesday, in paragraph 1) Reporting by Sanchayaita Roy in Bengaluru; Editing by Nivedita Bhattacharjee Our Standards: The Thomson Reuters Trust Principles., opens new tab

European shares see first daily gain in five on strong earnings

July 17 (Reuters) - European shares snapped a four-day losing streak on Thursday, boosted by gains in industrials ABB and Legrand after they reported positive earnings news. The pan-European STOXX 600 index (.STOXX), opens new tab closed 1% higher. Most major regional bourses also gained, with Germany benchmark DAX (.GDAXI), opens new tab gaining 1.5%, while France's CAC 40 (.FCHI), opens new tab added 1.3%. Swiss engineering group ABB (ABBN.S), opens new tab jumped almost 10% after posting its highest quarterly order intake yet, driven by demand for products used in data centres to support artificial intelligence. France's Legrand (LEGD.PA), opens new tab gained close to 9% after the electrical infrastructure provider hiked its annual sales target driven by strong growth in North American data centre segment. Rival Schneider Electric (SCHN.PA), opens new tab also jumped 7.7%. European chipmakers recouped some losses from the previous session with TSMC (2330.TW), opens new tab, the world's main producer of advanced AI chips, posting record profit in the second quarter boosting sentiment. ASML (ASML.AS), opens new tab rose 3.9%, following an 11% drop on Wednesday. Ocado (OCDO.L), opens new tab climbed 18.5% after the online supermarket reported a 77% rise in first-half underlying earnings and said its priority is to generate cash in its next financial year. The latest forecasts had shown that the outlook for European corporate health has deteriorated, with expectations of a drop of 0.7% year-on-year in second-quarter earnings, according to LSEG I/B/E/S data. WAITING ON TRADE CLARITY Investors continued to await clarity on U.S.-EU trade talks with the bloc preparing retaliatory measures in case negotiations with Washington failed. "Markets are still pretty optimistic that this may be the case and that things will progress in the next two weeks," said Daniela Hathorn, senior market analyst at Capital.com. "We've seen in the past, and even in Trump's first term, the amount of times that he actually threatened action and what he delivered was very limited." European equities fell sharply on Wednesday after Bloomberg reported that Trump is likely to fire Federal Reserve Chair Jerome Powell, but Trump later said he is not planning to do so. Meanwhile, Britain and Germany signed a wide-ranging friendship treaty that deepened ties in areas including defence and transport as UK attempts to reset ties with the EU. Among other moving stocks, Tomra Systems (TOM.OL), opens new tab dropped 13.3%, the worst day since October 2023, after the Norwegian group posted a second-quarter net sales miss. Swedish carmaker Volvo Cars (VOLCARb.ST), opens new tab advanced 7.9% after reporting a sharp decline in second-quarter operating profit that still exceeded analyst expectations. Also on Thursday, U.S. June retail sales data showed retail sales rebounding more than expected in June. Reporting by Sanchayaita Roy and Twesha Dikshit in Bengaluru; Editing by Nivedita Bhattacharjee, Sonia Cheema and Barbara Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab

European shares rise after four-day drop as ABB shines

European shares rebounded on Wednesday, fueled by robust quarterly results from ABB and optimism surrounding potential trade negotiations between the U.S. and EU. ABB's strong performance, driven by U.S. demand and AI-related products, boosted shares of Siemens and Schneider Electric. Investors are closely monitoring U.S.-EU trade talks, with the EU preparing retaliatory measures if negotiations falter. European shares rose on Wednesday after four consecutive sessions of losses, supported by strong quarterly results from Switzerland's ABB and optimism over a potential trade deal between the United States and the European Union. The pan-European STOXX 600 index up 0.8% as of 0718 GMT. ABB jumped 8.2% after the engineering firm posted record quarterly order intake, driven by strong U.S. demand and for products used in data centres to support artificial intelligence. Shares of rivals Siemens and Schneider Electric added 3.6% and 5.8% respectively. The three firms were among the top boosts to the European benchmark index. European chipmakers also recouped some losses from the previous session as TSMC, the world's main producer of advanced AI chips, posted record profit in the second quarter. ASML rose 1.7% following 11% drop on Wednesday. In trade, EU's trade chief Maros Sefcovic headed to Washington on Wednesday for tariff talks, and is expected to meet U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, an EU spokesperson told Reuters. Meanwhile, investors awaited for clarity on U.S.-EU trade talks as the bloc readied retaliatory measures if negotiations with Washington failed. On Wednesday U.S. President Donald Trump eased market anxiety after denying reports that said was planning to fire Federal Reserve Chair Jerome Powell soon. He confirmed he floated the idea with Republican lawmakers and renewed his criticism of the Fed chief for not cutting interest rates. Among other stocks, Evolution gained 6.5% after the Swedish gaming technology company reported its second-quarter results.

European shares rise after four-day slide, led by ABB

(Reuters) -European shares rose on Thursday after four consecutive sessions of losses, supported by strong quarterly results from Switzerland's ABB and optimism over a potential U.S. trade deal. The pan-European STOXX 600 index was up 0.7% as of 0854 GMT. All the major regional indexes traded higher, with Germany's trade-sensitive DAX up 1%, leading the pack. ABB jumped 7.2% after the engineering firm posted a record quarterly order intake, driven by strong U.S. demand and for products used in data centres to support artificial intelligence. Shares of rivals Siemens and Schneider Electric added 2.9% and 5.5%, respectively, and drove the European industrials index to a new record high, up 2%. The sector also led broader market gains in the European benchmark index. European chipmakers recouped some losses from the previous session as TSMC, the world's main producer of advanced AI chips, posted a record profit in the second quarter. ASML rose 1.5%, following an 11% drop on Wednesday. "European markets today are bouncing back ... the earnings, of course, have an impact on the stock market, but also everything to do with President Trump seems to still be at the forefront," said Axel Rudolph, senior technical analyst at IG Group. Rudolph added that Trump would likely strike a deal with EU by August 1 despite tough talk on tariffs, noting "EU's threat will be taken seriously by the U.S. because it would definitely hamper their trade". Meanwhile, investors awaited for clarity on U.S.-EU trade talks as the bloc readied retaliatory measures if ongoing negotiations with Washington failed. On Wednesday, U.S. President Donald Trump eased market anxiety after denying reports that said he was planning to fire Federal Reserve Chair Jerome Powell soon. He, however, confirmed that he had floated the idea with Republican lawmakers and renewed his criticism of the Fed chief for not cutting interest rates. Among individual stocks, Ocado rose 12.7%, to the top of the STOXX 600, after the British online supermarket and technology firm said it targets positive cash flow in its next financial year. Evolution gained 7% after the Swedish gaming technology company reported its second-quarter results. Conversely, UK's Wise slumped 9.4% after the money transfer firm missed its quarterly income estimates. British budget airline EasyJet fell 6% after warning that French air traffic strikes and rising fuel costs would weigh on annual profit. (Reporting by Sanchayaita Roy in Bengaluru; Editing by Nivedita Bhattacharjee and Sonia Cheema)

European shares see first daily gain in five on strong earnings

(Reuters) -European shares snapped a four-day losing streak on Thursday, boosted by gains in industrials ABB and Legrand after they reported positive earnings news. The pan-European STOXX 600 index closed 1% higher. Most major regional bourses also gained, with Germany benchmark DAX gaining 1.5%, while France's CAC 40 added 1.3%. Swiss engineering group ABB jumped almost 10% after posting its highest quarterly order intake yet, driven by demand for products used in data centres to support artificial intelligence. France's Legrand gained close to 9% after the electrical infrastructure provider hiked its annual sales target driven by strong growth in North American data centre segment. Rival Schneider Electric also jumped 7.7%. European chipmakers recouped some losses from the previous session with TSMC, the world's main producer of advanced AI chips, posting record profit in the second quarter boosting sentiment. ASML rose 3.9%, following an 11% drop on Wednesday. Ocado climbed 18.5% after the online supermarket reported a 77% rise in first-half underlying earnings and said its priority is to generate cash in its next financial year. The latest forecasts had shown that the outlook for European corporate health has deteriorated, with expectations of a drop of 0.7% year-on-year in second-quarter earnings, according to LSEG I/B/E/S data. WAITING ON TRADE CLARITY Investors continued to await clarity on U.S.-EU trade talks with the bloc preparing retaliatory measures in case negotiations with Washington failed. "Markets are still pretty optimistic that this may be the case and that things will progress in the next two weeks," said Daniela Hathorn, senior market analyst at Capital.com. "We've seen in the past, and even in Trump's first term, the amount of times that he actually threatened action and what he delivered was very limited." European equities fell sharply on Wednesday after Bloomberg reported that Trump is likely to fire Federal Reserve Chair Jerome Powell, but Trump later said he is not planning to do so. Meanwhile, Britain and Germany signed a wide-ranging friendship treaty that deepened ties in areas including defence and transport as UK attempts to reset ties with the EU. Among other moving stocks, Tomra Systems dropped 13.3%, the worst day since October 2023, after the Norwegian group posted a second-quarter net sales miss. Swedish carmaker Volvo Cars advanced 7.9% after reporting a sharp decline in second-quarter operating profitthat still exceeded analyst expectations. Also on Thursday, U.S. June retail sales data showed retail sales rebounding more than expected in June. (Reporting by Sanchayaita Roy and Twesha Dikshit in Bengaluru; Editing by Nivedita Bhattacharjee, Sonia Cheema and Barbara Lewis)

European shares rise after four-day drop as ABB shines

(Corrects day in paragraph 1 to Thursday from Wednesday earlier) (Reuters) - European shares rose on Thursday after four consecutive sessions of losses, supported by strong quarterly results from Switzerland's ABB and optimism over a potential trade deal between the United States and the European Union. The pan-European STOXX 600 index up 0.8% as of 0718 GMT. ABB jumped 8.2% after the engineering firm posted record quarterly order intake, driven by strong U.S. demand and for products used in data centres to support artificial intelligence. Shares of rivals Siemens and Schneider Electric added 3.6% and 5.8% respectively. The three firms were among the top boosts to the European benchmark index. European chipmakers also recouped some losses from the previous session as TSMC, the world's main producer of advanced AI chips, posted record profit in the second quarter. ASML rose 1.7% following 11% drop on Wednesday. In trade, EU's trade chief Maros Sefcovic headed to Washington on Wednesday for tariff talks, and is expected to meet U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, an EU spokesperson told Reuters. Meanwhile, investors awaited for clarity on U.S.-EU trade talks as the bloc readied retaliatory measures if negotiations with Washington failed. On Wednesday U.S. President Donald Trump eased market anxiety after denying reports that said was planning to fire Federal Reserve Chair Jerome Powell soon. He confirmed he floated the idea with Republican lawmakers and renewed his criticism of the Fed chief for not cutting interest rates. Among other stocks, Evolution gained 6.5% after the Swedish gaming technology company reported its second-quarter results. (Reporting by Sanchayaita Roy in Bengaluru; Editing by Nivedita Bhattacharjee)