Europe: German data, earnings nudge stocks near 4-year highs; Madrid lags

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[BENGALURU] European shares climbed back to a four-year high on Tuesday as positive German investor sentiment data and a slew of upbeat earnings lifted the mood, but Spanish stocks lagged after socialist and far-left parties joined forces to form a coalition. Read more at The Business Times.

The gains were led by telecoms stocks, which gained 1.4 per cent boosted by the world's second largest mobile operator Vodafone after it increased its full-year earnings guidance.

Among trade-sensitive chipmakers, Dialog Semiconductor took the spotlight, jumping 7 per cent after it lifted its gross and operating margin forecasts. Among losers, Barry Callebaut's 6 per cent slide stood out, after investment firm Jacobs Holding said it was selling a 2.85 per cent stake in the company.Spanish stocks underperformed the broader market to slip 0.9 per cent after the Socialists and far-left Unidas Podemos reached a preliminary coalition deal to form a government following a weekend general election that delivered a highly fragmented parliament.

Nuria Alvarez, analyst at Madrid-based brokerage Renta 4, said scepticism remains over whether the preliminary agreement would amount to a working government.

 

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