(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* Earnings underpin rally in Europe
* Basic resources index up 3.5%, Glencore rallies on results
* BP drives gains in oil and gas sector
* Ambu soars 24% as quarterly revenue beats forecasts
* Chinese central bank injects 1.7 trillion yuan
* Micro Focus tumbles, chairman quits after poor results
(Updates with closing prices)
By Susan Mathew
Feb 4 (Reuters) - European shares clocked their biggest
one-day gain in nearly four months on Tuesday as upbeat earnings
updates from BP and Glencore along with China's
moves to support its markets lifted sentiment.
China's central bank injected 1.7 trillion yuan ($243
billion) on Monday and Tuesday to stabilise markets that fell
heavily on heightened fears over the potential economic fallout
from the fast-spreading coronavirus.
In line with a pick up in global stocks, the pan-European
STOXX 600 index finished up 1.6%, building on Monday's
gains after virus fears knocked 3% off the index last week.
"It's just the stimulus out of China adding to confidence
today," said Willie Delwiche, investment strategist at Baird.
"Investors are maybe a little less concerned about virus
fears out of China and more that China is doing what it needs to
provide liquidity and kind of contain the economic impact."
But with more than 400 deaths and several travel bans on
China, headlines about the coronavirus outbreak are expected to
sway markets in the near term.
Broad-based gains in Europe were led by a 3.5% jump in the
basic resources sector. Packed with mining companies
focused on China, the sector broke a three-day losing run as
Glencore rallied 5.2% after it maintained 2020 output targets.
Oil company BP was the biggest boost to STOXX 600
after it raised its dividend and reported better-than-expected
fourth-quarter profit.
Along with a rebound in oil prices the oil and gas sector
, which has also been sold off heavily over the past
week, posted its best day in nearly five months.
Topping the pan-regional index was Danish medical equipment
manufacturer Ambu which soared 24% after reporting
better-than-expected quarterly revenue.
But a clutch of poor earnings kept a lid on gains.
Micro Focus International tumbled 22%. The British
IT company said Chairman Kevin Loosemore will step down this
month after full-year results fell short of expectations.
Italian carmaker Ferrari slipped 2.3% despite
meeting profit targets as it provided only a cautious upgrade to
its outlook for 2020.
Also languishing at the bottom of the STOXX 600 index was
Swiss inspections group SGS, logging its worst day in
more than 3-1/2 years after the company's second-biggest
investor, the von Finck family, cut its stake.
(Additional reporting by Sruthi Shankar and Ambar Warrick in
Bengaluru; Editing by Subhranshu Sahu, Shounak Dasgupta and
David Clarke)
