European stocks edged higher on Tuesday ahead of a critical speech on China trade relations from President Donald Trump, supported by generally well-received earnings.
The Stoxx Europe 600 SXXP, +0.17%, which finished Monday only 2% below its record close, increased 0.12% to 405.81.
Trump at 12 p.m. Eastern is due to deliver a speech to the Economic Club of New York. “Whatever the tone of the remarks, the effect on markets is likely to be short term. We are just a tweet away from a policy change, and the next communication on trade could reverse market assumptions,” said Paul Donovan, chief economist at UBS Global Wealth Management.
Vodafone Group VOD, +0.74% VOD, -0.68% rose 1% as the U.K.-based mobile-phone operator lifted its guidance for fiscal 2020 adjusted earnings to imply 2% to 3% organic growth. Its first-half organic adjusted Ebitda rose 1.4% on 0.3% growth in service revenue, helped by gains in South Africa, Spain and Italy.
Infineon Technologies IFX, +5.11% climbed 5% as the German chip maker reported better fourth-quarter revenue and operating profit than forecast, helped by its unit that produces chips for smartphones. Infineon’s outlook implies strong sales growth in the second half of its fiscal year, according to Gianmarco Bonacina, an analyst at Equita, the Italian broker.
B&M European Value Retail BME, -7.28% tumbled 7.3%. The discount retailer experienced a worse than expected 2.8% decline in adjusted pretax profit as the company reported “continued disappointing financial performance in Germany” and slowing same-store sales growth at its U.K. stores.
Electrocomponents ECM, -12.38% shares slumped 13.6% as the distributor of industrial and electronics products said the second half started with “modest growth” with “ongoing softness in electronics.”