06.08.201402:32:47UTC+00European shares rebound on positive earnings

European shares ended its four-day losing streak as it recovered a bit with help from corporate earnings reports that beat estimates. The positive earnings report from the likes of Credit Agricole SA and Deutsche Post AG bolstered the benchmark index but was cut short by weakness in the Italian and Spanish markets.

The pan-European Euro Stoxx 600 index is inched up with a 0.3% gain to 332.1 in the closing trade with an intraday high of as much as 0.8%. The previous closing trade was a low last seen in April 16 of this year.The gauge has already lost a total of 2.9% for the previous weeks which is attributed from worse-than-expected earnings report from the likes of ArcelorMittal and Holcim Ltd. The pan-European FTSEurofirst 300 increased provisionally by 0.4% to 1,334.94 at the closing trade. UK’s FTSE 100 is up by 0.07% or 4.96 pips to 6,682.48. Germany’s DAX Index and France’s CAC 40 Index are both up by 0.4% respectively. Meanwhile Italy’s FTSE MIB and Spain’s IBEX 35 Index are down by 1.6% and 1.4% respectively. Nie out of the eighteen western-European markets advanced their national benchmark indexes.

Deutsche Post added 2.2% following a report that showed a 5.7% increase in the earnings for the quarter. Credit Agricole went up by 2.2% to 10.51 euros following a corporate earnings report that surpassed the estimate of 617 million euros by 11 million euros to an amount of 628 million euros.

Officer at Notz, Stucki & Cie., Pierre Mouton told Bloomberg that the earnings in Europe have been so far, “a mixed bag” and that the European markets right now are considerably cheap on average which means that purchasing now might be a good investment if you look forward up to three to six months.