Earnings drag on STOXX, mining M&A boosts FTSE

EARNINGS DRAG ON STOXX, MINING M&A BOOSTS FTSE

The STOXX 600 SXXP is falling 0.2%, as a stream of earnings misses weigh on the index, while a basic resources (.SXPP) M&A boost tempers steeper drops along with a few expectation-beating results.

Anglo American (.AAL.L) shares are up 11.3%, with trading volume running at 15 times higher than the hourly average over the last five years after news that BHP Group BHP has made a $38.8 billion bid to buy the London-listed miner.

Anglo American's heavy weighting is boosting the FTSE 100 UK100 even more after the blue-chip index hit a record high on Tuesday, it is up 0.5% and outperforming other major indices.

In the UK, AstraZeneca AZN shares are up 5.3% after revenue and profit beat expectations, and Unilever ULVR shares are up 5% after Q1 sales beat forecasts.

But drugmaker Indivior Plc INDV shares are flashing red, off 7.5% after it said it will seek shareholder approval to move its primary listing to the U.S.

Spain's main IBEX index is also outperforming, up 0.2% a day after the country's Prime Minister Pedro Sanchez said he would step back from public duties to reflect on his future.

Weighing on the STOXX 600 are Adyen ADYEN shares, down 14% after a Q1 business update, Swedish telecom operator Telia TELIA shares, down 9.3% after first-quarter core earnings narrowly expectations, and Indutrade INDT shares, down 9.5% after Q1 results.

Some major banks are out with earnings. Spain's Sabadell SAB up 10% and trading at a nearly six year high after Q1 net profit beat expectations. On the other hand Deutsche Bank DBK shares are barely changed even as results showed profit jumping 10%.

(Lucy Raitano)

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