Deutsche Bank, Lloyds earnings prop up European shares

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 27, 2021. REUTERS/Staff

(Corrects day of the week to Wednesday in first paragraph)

(Reuters) – European stocks inched higher on Wednesday on expectations of a bumper earnings season following strong results from Deutsche Bank, Lloyds Banking Group and other lenders.

The pan-European STOXX 600 index rose 0.1% in early trading, with the region’s banking sector up 1.1%.

Deutsche Bank jumped 5.2% to the top of Germany’s blue-chip DAX as strength at its investment bank helped offset headwinds from restructuring and the pandemic.

Topping London’s FTSE 100, Lloyds Banking Group rose 4.2% after reporting a better-than-expected profit.

Sweden’s SEB and Spain’s Santander also inched higher after their quarterly results.

Weighing on the STOXX 600, Lysol maker Reckitt Benckiser Group fell 2% even as the company backed its full-year outlook.

Earnings at European companies in the first quarter of 2021 are expected to surge 71.3% from a year earlier, according to Refinitiv IBES data, up from last week’s forecast of a 61.2% jump.

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