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European stocks rise as Nestlé leads strong earnings wave; Credit Suisse slumps

European stocks rise as Nestlé leads strong earnings wave; Credit Suisse slumps

European stocks rose on Thursday, buoyed by a solid start to earnings season on both sides of the Atlantic, with the European Central Bank expected to keep policy intact.

The Stoxx Europe 600
SXXP,
+0.46%
rose 0.4% to 438.69, as the index closed in on the record 442.49 reached last week.

The ECB is making its monthly monetary policy announcement, though analysts don’t expect it to follow the Bank of Canada in reducing its bond purchases in the face of signs of a strengthening economy. In March, the ECB said it would accelerate its bond purchases within its existing €1.85 trillion program, and while it hasn’t really done so, euro-area bond yields have stabilized.

“So, the Governing Council will have no additional cause for concern about financial conditions, even while lack of clarity about its precise reaction function persists,” said Chris Scicluna, head of research for Daiwa Europe.

U.S. stock futures
ES00,
-0.07%

NQ00,
+0.01%
were steady, following Wednesday’s low-volume march to the second-highest level
SPX,
+0.93%
in history.

Nestlé
NESN,
+3.61%
shares rose 3%, as the Swiss food giant said first-quarter organic sales rose a stronger-than-expected 8%.

Credit Suisse
CSGN,
-6.22%
shares dropped 5%, as the Swiss bank said it is raising 1.7 billion francs ($1.9 billion) to rebuild its balance sheet, and said it would take another 600 million franc charge in the second quarter relating to the wipeout of Archegos Capital Management

Wartsila
WRT1V,
+13.30%
shares jumped 12%, as the Finnish maker of power equipment reported its order intake was steady after a 19% drop in pretax profit on a 19% decline in sales during the first quarter.

Volvo
VOLV.B,
+3.06%
climbed 3%, as the company raised its construction equipment guidance and reported a stronger-than-forecast first-quarter operating profit.

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Erin Clark

Erin is a sports enthusiast who loves indulging in occasional football matches. She is a passionate journalist who flaunts a perfect hold over the English language. She currently caters her skills for the sports and health section of Report Door.