European Stocks Rise on Earnings; Maersk, Hermes, Storebrand Up

Nigel Thomas
11 May, 2011
New York City

European stocks inched higher as earnings lifted trading sentiment despite the ongoing worries linked to Greece. German Chancellor Angela Merkel said Greece must do its part in rebuilding its economic foundation. Maersk and Hermes gained more than 4% on better quarterly results.

[R]1:30 PM Frankfurt – European stocks inched higher as earnings lifted trading sentiment despite the ongoing worries linked to Greece. German Chancellor Angela Merkel said Greece must do its part in rebuilding its economic foundation. Maersk gained more than 4% on better quarterly results. Hermes SCA quarterly sales surged 26%.[/R]

European markets inched higher on better than expected corporate earnings. However, the ongoing Greece default worries kept lid on market gains.

Greece continued to dominate the headlines as talks for the second bailout after a year intensified.

German Chancellor Angela Merkel told reporters in Berlin today that Germany and other nations can offer Greece help but “only if Greece’s stability and eagerness to reform is proven.”

Merkel went on to add that Greece need to properly rebuild its economic foundation and we can not just help the nation unless Greece does its own part.

On the economic front, UK reported higher trade deficit in March despite a rise in crude oil exports. The Bank of England lifted its inflation forecast and indicated tighter monetary policy.

Stock Movers

Axel Springer AG increased 2.4% to 111.05 euros after the Europe’s largest newspaper publisher said first quarter net increased 6.5% excluding some items on higher online and international business revenues.

Bourbon SA increased 6.4% to 34.69 euros after the oil tanker fleet owner said first quarter sales increased 24% on higher demand for oil and from oil companies.

Hermes International SCA soared 5.1% to 170 euros said first quarter sales increased 26%.

Maersk A/S gained 4.1% to 51,350 kroner after the container port terminal operator reported first quarter earnings before minority interests rose 85% to 6.35 billion kroner on sales increase of 11% to 79.11 billion kroner. Container shipping volume increased 12% and oil gas division sales increased 25% on oil price increase.

The logistics company said that the quarterly performance was helped by an improvement in all of its segments and container shipping division net profit increased to 2.39 billion kroner from 904 million kroner a year ago on 5% increase in volume gains and 2% rise in freight rates. But costs in the division increased only 3%.

Storebrand ASA increased 2.1% to Norwegian kroner 51.90 after Norway’s largest insurer said that current financial markets conditions in the year suggest a positive growth in its core markets.