Maersk Shares Sailing Higher in Profit-Filled Sea, with European Shares Mixed

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Shares of Danish shipping giant Maersk rose on Tuesday on a mixed day for European stocks, which moved amid a sea of ​​earnings reports. Maersk MAERSK.B, shares of + 0.71% opened 5% higher, after the world’s largest ocean container line issued a positive trade update after Monday’s close, with shares closing around 2 % more.

The group’s preliminary earnings for the first quarter of the year show that volumes increased 5.7% compared to the same period last year, while average freight rates increased 35%. Maersk expects to report revenue of $ 12.4 billion for the quarter with underlying earnings before interest, taxes, depreciation and amortization (Ebitda) of $ 4 billion. While analysts said the results were largely in line with expectations, the group’s update to its full-year guidance was well above consensus. Maersk raised its underlying Ebitda guidance for 2021 to a range of $ 13 billion to $ 15 billion after previously projecting from $ 8.5 billion to $ 10.5 billion. Maersk’s results gave a boost to European equities, which were mostly trading around or below the fixed level, with the pan-European Stoxx 600 SXXP, -0.14% just below the fixed level, alongside the FTSE 100 UKX of London, -0.12% and the CAC 40 PX1 of Paris. , -0.11%. The DAX DAX of Frankfurt, -0.32% fell 0.2%. Dow YM00 futures, + 0.02% were heading up around 30 points, set for a soft but positive open after closing 62 points lower Monday at 33.981. “European markets had a fairly quiet start to the week, after last week’s dips, rising slightly in what looks like a busy few days on the earnings front, which started with [electriccar maker] Tesla’s TSLA, numbers + 1.21% after last night’s bell, ”said Michael Hewson, analyst at CMC Markets, of the European stocks due out Monday. Markets are likely to react to the closely-monitored US Federal Reserve Open Market Committee’s two-day meeting in April, which begins Tuesday. The meeting, which culminates with a press conference on Wednesday, will give investors an insight into the central bank’s latest position on inflation and monetary policy. Despite the strong end of US markets yesterday and a dovish Asian session, today’s European open appears to be another dovish one as the latest Federal Reserve meeting begins, with little expectation of a change in tone other than what what we saw. in March, ”Hewson added. European stocks that made big moves on Tuesday were largely tied to earnings results. Shares of BP BP, + 0.71%, rose more than 1% as the oil company promised to reward investors with a $ 500 million share buyback program after meeting debt reduction targets. Earnings in the first quarter of 2021 also firmly exceeded analyst expectations, with an underlying net gain on a replacement cost basis, the most closely watched measure by analysts, coming in at $ 2.6 billion, ahead of the consensus of $ 1.5 billion. HSBA from banking giant HSBC, shares of + 1.45% rose close to 2%, after group net income for the first quarter of $ 3.9 billion exceeded analyst consensus by more than $ 1 billion . The group said earnings before tax in the quarter were 79% higher than the same period in 2020. UBS UBS, + 0.33% was another heavy financial weight to report, but the results sent the stock down more than 2 %. The Swiss bank reported strong earnings for the first quarter of 2021, with earnings before taxes increasing 14% from the previous year, but the results were marred by a surprise loss related to the collapse of the hedge fund Archegos Capital. UBS said $ 774 million would be needed from the Archegos-linked liquidation sale.