February 7, 2018 / 8:38 AM / a year ago

European shares snap seven-day losing streak

MILAN, Feb 7 (Reuters) - European shares broke a seven-day losing streak on Wednesday as investors took heart from a strong bounce on Wall Street at the end of a rollercoaster session.

All sectors in Europe were trading in positive territory, helping the pan-European STOXX 600 index to rise 0.4 percent by 0824 GMT.

Traders said further turbulence ahead could not be ruled out as volatility remained high in the wake of historic stock market declines caused by worries over inflation.

“It remains too early for the moment to suggest that this might be the end to this particular bout of weakness,” said Michael Hewson, Chief Market Analyst at CMC Markets UK.

A number of well-received company updates also provided support.

Hexagon soared 7 percent to lead gainers on the STOXX after the Swedish industrial technology company reported fourth-quarter core earnings ahead of analyst forecasts.

Statoil rose more than 2 percent. The Norwegian oil producer said it would raise its dividend after beating fourth-quarter earnings forecasts, helped by higher oil prices.

Delivery Hero and insurer Hannover Re also rose on the back of strong results.

Some disappointed, with ABN Amro falling 3.4 percent. The Dutch bank beat analyst expectations with a 63 percent jump in fourth-quarter net profit, but some traders voiced concerns over cash returns, saying it was light on capital.

Enzyme maker Novozymes and brewer Carlsberg also fell sharply following their updates.

According to Thomson Reuters data, 48.2 percent of STOXX 600 companies that have reported results so far exceeded earnings estimates. That’s below the 50 percent beat seen in a typical quarter. (Reporting by Danilo Masoni; editing by Tom Pfeiffer)

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