(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* STOXX slips 1.2% in April
* Miners mark first monthly decline in four
* Prosus surges on U.S.-China resolution hope
* Novo Nordisk up on forecast raise
April 29 (Reuters) - European shares on Friday rose to their
highest in a week as strong earnings reports and a rally in
miners boosted risk appetite at the end of a volatile month
dominated by concerns about slowing global growth.
The pan-European STOXX 600 index rose 0.7%,
trimming its monthly declines to 1.2%. Friday's rally lost some
of its luster after Wall Street opened lower as Amazon
and Apple results weighed.
Worries about faster interest rate hikes, Russian gas
supplies, China's COVID-19 lockdowns and lofty valuations in the
U.S. technology sector triggered sell-offs in global equities
this month, with the STOXX 600 sinking to a one-month low at one
Miners rallied 2.5% on Friday as iron ore and copper
prices rose after China vowed economic support, raising hopes
for sustained demand.
The metals and mining index marked its first monthly
decline in four as lockdowns in China weighed heavily, pushing
the index down almost 10% from 14-year highs it scaled just last
"Higher commodity prices have helped stabilize industrial
European stocks, and crucially the magic promise of Chinese
stimulus has appeared, pushing up commodity prices and giving
stocks across the continent a lift," said Chris Beauchamp, chief
market analyst at online trading platform IG.
Upbeat earnings reports also helped markets, with Danish
drugmaker Novo Nordisk gaining 5.4% after increasing
its sales and operating profit outlook for the year.
French spirits group Remy Cointreau predicted a
strong start to business in its first quarter to June. Its
shares, rose 1.8%.
"We saw during the pandemic that corporate earnings are
fairly resilient to the large economic shocks. It is also
signaled by recent earnings reports," said Elwin de Groot,
senior market economist at Rabobank.
Analysts expect profit for STOXX 600 companies to grow 27.1%
in the first quarter and 13.7% in the second quarter, as per
Refinitiv IBES data, with the biggest boost coming from energy
Eurozone economic growth was slower than expected in the
first three months of the year, preliminary data showed, as the
conflict in Ukraine hit economic activity.
Dutch chipmaking equipment supplier BE Semiconductor
slumped 9.2% after it said its order intake in 2022
had been limited by lower demand for high-end smartphones and
weakness in Chinese markets.
Dutch technology investor Prosus, which has a major
stake in China's Tencent, jumped 9% after a report
said U.S. and Chinese regulators were negotiating on-site audits
in a key step to avoid U.S. delistings of Chinese companies.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak
Dasgupta, William Maclean)