(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* Share repurchase plans lift oil majors
* Credit Suisse drops on profit slump
* Euro zone sentiment hits record high in July
(Adds comments, details; updates prices throughout)
By Sruthi Shankar and Shreyashi Sanyal
July 29 (Reuters) - European stocks hit all-time highs on
Thursday after strong earnings from commodity majors, Airbus and
a clutch of other companies, while data showing record high euro
zone economic sentiment in July added to the positive mood.
The pan-European STOXX 600 index rose 0.5% to a
closing high of 460.57 points.
UK-listed Royal Dutch Shell gained 3.8% and
France's TotalEnergies added 2.2% after both companies
announced share buybacks as a surge in oil and gas prices
boosted their earnings.
Miners, already the best sectoral performers in
2021, jumped 2.4% after Anglo American boosted its
shareholder payout to a record $4.1 billion. Rising silver and
gold prices also boosted the sector.
Airbus edged 0.6% higher after the world's largest
planemaker sharply raised its forecasts for full-year deliveries
and earnings.
Strong quarterly earnings and optimism around European
reopening put the STOXX 600 on course for its sixth straight
month of gains despite lingering concerns about inflation and
China's regulatory crackdown.
"Globally diversified stocks have recorded the strongest EPS
beats, while consumer stocks with high emerging market exposure
have recorded the weakest," said Milla Savova, investment
strategist at BofA, said in a note.
Savova, however, noted that mentions of inflation by STOXX
600 companies have risen by more than 400% over the past year,
leaving them at an all-time high in absolute terms.
Investors drew comfort from a supportive stance by central
banks after Federal Reserve Chair Jerome Powell on Wednesday
said the U.S. job market still had "some ground to cover" before
it was time to start withdrawing economic support.
Estimates from the European Commission showed sentiment in
the 19-country single-currency bloc rose to 119.0 points in
July, a record since data began to be collected in 1985.
"Never before has sentiment been so positive among eurozone
businesses and consumers. This indicates that the economic
rebound is in full swing," said Bert Colijn, senior economist,
eurozone at ING.
Finnish telecom equipment maker Nokia climbed
4.6% after it raised its full-year outlook as it benefits from a
sharp turnaround in its business.
Europe's largest carmaker Volkswagen hit a
record high earlier as it lifted its profit margin target for
the second time in less than three months.
Close to 41% of the STOXX 600 companies have reported so
far, and 67% of them have topped analysts' profit estimates, as
per Refinitiv IBES data. Typically, 51% beat earnings forecast.
Among decliners, Swiss bank Credit Suisse dropped
2.0% after reporting a near 80% fall in its second-quarter
profit, hit by the fallout from the collapse of Archegos.
Food giant Nestle and brewer Anheuser-Busch InBev
fell after their results.
(Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru;
Editing by Subhranshu Sahu, Sriraj Kalluvila and Sonya
Hepinstall)
