- ABB up after it posts Q2 record orders; boosts Industrial stocks
- Evolution rise after Q2 earnings surpass expectations
- Ocado gains on plan to turn cash-flow positive by FY26
July 17 (Reuters) - European shares rose on Thursday after four consecutive sessions of losses, supported by strong quarterly results from Switzerland's ABB and optimism over a potential U.S. trade deal.
The pan-European STOXX 600 index was up 0.7% as of 0854 GMT. All the major regional indexes traded higher, with Germany's trade-sensitive DAX up 1%, leading the pack.
ABB jumped 7.2% after the engineering firm posted a record quarterly order intake, driven by strong U.S. demand and for products used in data centres to support artificial intelligence.
Shares of rivals Siemens and Schneider Electric added 2.9% and 5.5%, respectively, and drove the European industrials index to a new record high, up 2%.
The sector also led broader market gains in the European benchmark index.
European chipmakers recouped some losses from the previous session as TSMC , the world's main producer of advanced AI chips, posted a record profit in the second quarter. ASML rose 1.5%, following an 11% drop on Wednesday.
"European markets today are bouncing back ... the earnings, of course, have an impact on the stock market, but also everything to do with President Trump seems to still be at the forefront," said Axel Rudolph, senior technical analyst at IG Group.
Rudolph added that Trump would likely strike a deal with EU by August 1 despite tough talk on tariffs, noting "EU's threat will be taken seriously by the U.S. because it would definitely hamper their trade".
Meanwhile, investors awaited for clarity on U.S.-EU trade talks as the bloc readied retaliatory measures if ongoing negotiations with Washington failed.
On Wednesday, U.S. President Donald Trump eased market anxiety after denying reports that said he was planning to fire Federal Reserve Chair Jerome Powell soon.
He, however, confirmed that he had floated the idea with Republican lawmakers and renewed his criticism of the Fed chief for not cutting interest rates.
Among individual stocks, Ocado rose 12.7%, to the top of the STOXX 600, after the British online supermarket and technology firm said it targets positive cash flow in its next financial year.
Evolution gained 7% after the Swedish gaming technology company reported its second-quarter results.
Conversely, UK's Wise slumped 9.4% after the money transfer firm missed its quarterly income estimates.
British budget airline EasyJet fell 6% after warning that French air traffic strikes and rising fuel costs would weigh on annual profit.
Reporting by Sanchayaita Roy in Bengaluru; Editing by Nivedita Bhattacharjee and Sonia Cheema
Source: Reuters