Earnings Results, Steady Oil Prices Lift European Bourses Midday
European bourses tracked moderately higher midday Tuesday as traders weighed a generally solid earnings season and awaited developments in the Persian Gulf.Tech and oil stocks led gains on continental trading floors, while food and bank shares lagged.Shares in Bayer traded up 4.6% midday after the German drug-and-chemical giant reported Q2 earnings and revenue above outlooks.Front-month North Sea Brent crude oil futures were largely steady at $83.85 a barrel.Investors also eyed Wall Street futures in the green, but choppy closes overnight on Asian exchanges.In economic news, retail sales in Italy decreased by 0.1% in June from May, reported the National Statistics Institute. On the year, the nation's retail sales index rose in value by 3.1% in June, and by 1.9% in volume.The pan-continental Stoxx Europe 600 Index was up 0.6% mid-session.The Stoxx Europe 600 Technology Index was up 1.9%, but the Stoxx 600 Banks Index lost 0.1%.The Stoxx Europe 600 Oil and Gas Index rose 0.7%, while the Stoxx 600 Europe Food and Beverage Index declined 0.4%.The REITE, a European REIT index, rose 0.4%.On the national market indexes, Germany's DAX was up 0.7%, and the FTSE 100 in London gained 0.4%. The CAC 40 in Paris was up 0.1%, and Spain's IBEX 35 was flat.Yields on benchmark 10-year German bonds were lower, near 3.15%.The Euro Stoxx 50 volatility index was down 1.9% at 15.76, indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.
