Financials & earnings’ lift European stocks higher despite Fed blow


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Financials & earnings’ lift European stocks higher despite Fed blow

On Thursday, the 1st of August 2019, a basket of European shares posts decent gains after a robust quarterly earnings' report of British American Tobacco had beaten an analysts’ estimate by solid margins and a multibillion-euro takeover deal of London Stock Exchange for Refinitiv had undermined early glooms of a downscaled prospect of several Fed rate cuts this year.

Followed by a stronger second-half forecast and solid gains in operating profits on Q2, 2019, British American Tobacco climbed more than 7 percent, which eventually proffered a big boost to regional Pan-European STOXX 600.

On Thursday’s (August 1st) market wind down, STOXX 600 closed the day 0.5 percent higher, while London Stock Exchange added 6.5 percent to reach a record high after a formal announcement of its $27 billion acquisition deal for Refinitiv.

Nonetheless, under the terms of the deal, London Stock Exchange would hold 85 percent stake of Refinitiv, while Thompson Reuter, parent organization of Reuters News, would retain 15 percent stake of financial data analytics firm Refinitiv.

Quoting statistics, London’s FTSE 100 wrapped up Thursday’s (August 1st) market almost flatlined to 7,584.87 and French CAC 40 added 0.70 percent to round off the day at 5,557.41, while Germany’s trade-sensitive DAX closed the day 0.53 percent higher to 12,253.15 in context of a much-softer euro zone currency.

Meanwhile, Italy’s FTSE MIB extended its gaining streak on Thursday (August 1st) and added 0.79 percent to 21,566.91, while Madrid’s IBEX 35 winded up the day 0.75 percent higher to 9,038.20.