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European shares recover at end of worst week in six months
May 19, 2017 / 7:33 AM / 7 months ago

European shares recover at end of worst week in six months

MILAN, May 19 (Reuters) - European shares rose slightly in early deals on Friday, timidly recovering from heavy losses suffered earlier this week after U.S. political turmoil fuelled worries over U.S. President Donald Trump’s stimulus plans, denting risk appetite.

The pan-European STOXX 600 index rose 0.3 percent by 0725 GMT, but was down 1.5 percent on the week, its biggest weekly loss since early November. Britain’s FTSE was up 0.4 percent and euro zone blue chips added 0.3 percent.

While gains were spread across all sectors, pharma stocks and financials gave the biggest boost to the STOXX with shares in heavyweight drugmaker Roche up 0.6 percent, helped by a Barclays price target upgrade, and Spanish lender Banco Santander up 0.8 percent.

Among the biggest movers was Dufry, up 6.9 percent after luxury group Richemont bought a 5 percent stake in the company.

Hikma shares fell 4.9 percent after the drugmaker trimmed its revenue forecast to account for the delay in its U.S. generic drug launch.

This week’s losses have pulled the stocks down from 21 month highs hit after a run driven by big fund inflows into Europe, solid macro data and surprisingly strong corporate earnings.

With 80 percent of European companies having reported so far, 65 percent of them have beaten expectations and 8 percent have met them, according to I/B/E/S data. First quarter earnings growth is seen at 19.4 percent, slightly below the more than 20 percent previously forecast. (Reporting by Danilo Masoni, Editing by Helen Reid)

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