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European Shares Rise to Highest Level Since 2008

Strategic Insights

— 2 min read

The Stoxx Europe 600 Index touched its highest level since September 2008 after a series of positive earnings results from major companies, including Intel Corp. and JPMorgan Chase & Co. The rally was led by chipmakers like Infineon Technologies AG and STMicroelectronics NV, which rose on Intel's forecast of sales exceeding analysts' estimates. Allied Irish Banks Plc surged 7.9% after Goldman Sachs recommended buying its shares, while Ericsson AB rallied 15.3% after Credit Suisse boosted its rating. However, shares in Greece declined as billionaire investor George Soros expressed concerns about the cost of borrowing in the nation's rescue package.

Key Takeaways:

  • European shares rose to their highest level since 2008, with the Stoxx Europe 600 Index gaining 0.7% to 270.44 in London.
  • Chipmakers led the rally, with Infineon Technologies AG and STMicroelectronics NV surging on Intel's forecast of sales exceeding analysts' estimates.
  • Allied Irish Banks Plc climbed 7.9% after Goldman Sachs recommended buying its shares, while Ericsson AB rallied 15.3% after Credit Suisse boosted its rating.
  • Shares in Greece declined, however, as billionaire investor George Soros expressed concerns about the cost of borrowing in the nation's rescue package.
  • The Stoxx 600 has surged 71% and the S&P 500 has jumped 78% from lows in March 2009 as the economy returned to growth.
  • Intel forecasted second-quarter revenue of up to $10.6 billion, exceeding analysts' predictions, and 2010 gross margins will widen to a record.
  • JPMorgan beat analysts' estimates with a 55% rise in first-quarter earnings on higher trading revenue.
  • The European Union agreed a $61 billion aid proposal to help Greece tackle the biggest budget deficit in the region.

Statistics:

  • The Stoxx Europe 600 Index gained 0.7% to 270.44 in London.
  • Chipmakers Infineon Technologies AG and STMicroelectronics NV rose on Intel's forecast of sales exceeding analysts' estimates.
  • Allied Irish Banks Plc surged 7.9% after Goldman Sachs recommended buying its shares.
  • Ericsson AB rallied 15.3% after Credit Suisse boosted its rating.
  • Shares in Greece declined 1.1% as billionaire investor George Soros expressed concerns about the cost of borrowing in the nation's rescue package.
  • The Stoxx 600 has surged 71% since March 2009.
  • The S&P 500 has jumped 78% from lows in March 2009.
  • Intel forecasted second-quarter revenue of up to $10.6 billion.
  • JPMorgan's first-quarter earnings rose 55% on higher trading revenue.
  • The European Union agreed a $61 billion aid proposal to help Greece tackle the biggest budget deficit in the region.

Sources:

  • Bloomberg estimates
  • Euclid Infotech Pvt. Ltd.
  • Syndigate.info an Albawaba.com company

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