(Reuters) – European shares recovered from early losses on Thursday as a solid batch of bank earnings outweighed the impact of falling expectations of U.S. interest rate cuts and a slump in Shell shares after its worst results in more than two years.
Shares in London Stock Exchange Group jumped 5.9% after it formally announced its $27 billion merger with financial information firm Refinitiv, driving a 1.5% surge in Europe’s financial services index <.SXFP> to a record high.
Similarly, Asia-focused lender Standard Chartered
“After a difficult Q1, when profits came in below the level a year before, Q2 appears to have been a much better quarter for Barclays,” said CMC Markets analyst Michael Hewson.
“This would appear to be a welcome boost for CEO Jes Staley whose strategy for turning the bank around has come under fire.”
Both Asia and Wall Street markets had fallen overnight after the U.S. Federal Reserve as expected cut interest rates but disappointed investors hoping for a clear sign of several more cuts to come to support growth and stock market valuations.
The euro zone looks in weaker shape than the United States and a 5% slide in Siemens
The continent’s biggest online-only fashion retailer, Zalando
London Stock Exchange’s
The deal will transform the British company into a market data and analytics giant and position it to compete with Bloomberg as both a distributor and creator of financial data.
The dent to sentiment from the Fed hurt commodities markets overnight, with a fall in iron ore, copper and oil prices pulling down shares in mining and energy majors.
The oil and gas sector slid 1%, while the materials index <.SXPP> fell 2.5%, with London-listed shares of Rio Tinto
(Reporting by Susan Mathew and Medha Singh in Bengaluru; editing by Patrick Graham)