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Miners bolster European shares, Provident Financial plummets

Published 22/08/2017, 05:24 pm
© Reuters.  Miners bolster European shares, Provident Financial plummets
UK100
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BHPB
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ANTO
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VANQ
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STOXX
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STX50EEX
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601633
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LONDON, Aug 22 (Reuters) - European shares rose in early deals on Tuesday, rebounding from a three-day losing streak as results boosted heavyweight miners BHP Billiton and Antofagasta , while Provident Financial plunged after another profit warning.

The pan-European STOXX 600 .STOXX rose 0.6 percent, having fallen close to a five-month low in the previous session, while euro zone blue chips .STOXX50E also gained 0.6 percent.

Britain's FTSE 100 .FTSE was up 0.6 percent, and Germany's DAX .GDAXI jumped 0.7 percent.

UK subprime lender Provident Financial PFG.L shed more than 48 percent after it issued its second profit warning in two months, cancelled its dividend and said that its chief executive was leaving. a positive note, Europe's basic resources sector .SXPP enjoyed a second session of gains, supported by a rally in iron ore prices. MET/L

Well-received results from miners BHP Billiton BLT.L and Antofagasta ANTO.L also boosted the sector, with both rising around 2 percent, the top-gaining mining firms. in UK housebuilder Persimmon PSN.L were also among the top gainers, up 3.1 percent after it posted a 30 percent rise in first-half profit. European earnings season is drawing to a close, with 87 percent of MSCI Europe firms having given updates for the second quarter.

Of these firms, more than 60 percent have either met or beaten analysts' expectations, according to Thomson Reuters data, with earnings growth for the quarter clocking in at around 24 percent compared with the same period last year.

Aside from earnings, shares in Fiat Chrysler FCHA.MI extended gains for a second day, up 3.1 percent at their highest level since April 1998, after China's Great Wall Motor Co Ltd 601633.SS confirmed its interest in the Italian-American automaker. Provident Financial vs. FTSE 100

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