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European stocks and U.S. equity futures traded higher on Wednesday, as investors seized on positive results from Amazon and Google parent Alphabet, along with a raft of continental earnings from Siemens, Vodafone and more.
The Stoxx Europe 600 index SXXP, +0.53% rose 0.8% to 409.30, after a near 1.3% gain on Tuesday, which was the best gain since Jan. 6. The German DAX DAX, +0.46% rose 0.8%, the French CAC 40 PX1, +0.22% gained 0.6%, and the FTSE 100 index UKX, +0.19% added 0.6%.
The FTSE MIB Italy index I945, +2.08% surged more than 2% on hopes former European Central Bank President Mario Draghi may form a new government. Draghi has been called to see Italy’s head of state, President Sergio Mattarella, on Wednesday morning, after the country’s left-leaning coalition government fell apart, The Wall Street Journal reported.
The market’s response “suggests they think the government can govern for a while and enact reforms and has, hence, some momentum to it,” said Sébastien Galy, senior macro strategist, at Nordea, in a note to clients.
Italian banks were leading those gains with Intesa Sanpaolo ISP, +5.47% and UniCredit UCG, +4.51% up 4%.
U.S. stock futures rose, led by Nasdaq-100 futures, after strong results from technology giant Alphabet GOOGL, +1.38% and e-commerce group Amazon AMZN, +1.11%, whose earnings were somewhat overshadowed by news that Chief Executive Jeff Bezos will step down. He will become executive chairman with the CEO spot taken by Amazon Web Services head Andy Jassy.
Opinion: The departure of Jeff Bezos won’t change much at Amazon — for now
European earnings news boosted shares of several companies, with Novo Nordisk NVO, +0.80% surging 4%, after the Danish pharmaceutical company posted a forecast-beating rise in fourth-quarter net profit.
Shares of Publicis PUB, +4.37% rose more than 5%, after the advertising giant said 2020 ended with revenue only slightly below the previous year, as its data business Epsilon helped drive U.S. growth. The company was unable to offer guidance, citing continuing uncertainty from the COVID-19 pandemic.
Vodafone VOD, +0.52% VOD, +3.38% shares climbed 3.5%, after the telecoms group said it returned to organic service revenue growth in the third quarter of fiscal 2021, and reiterated full-year guidance.
Banco Santander SAN, +4.75% SAN, +1.50% shares rose 2.5%, after the Spanish bank said it expects higher profitability this year as it met profits guidance for 2020 and posted a key capital ratio above its target range.
Shares of Siemens SIE, +1.62% rose over 1%, after the German engineering conglomerate reported higher net profit in the first quarter of fiscal 2021, and raised guidance for the year.
Drug company GlaxoSmithKline GSK, +0.67% GSK, +0.63% announced a €150 million ($180.7 million) partnership with German pharmaceutical CureVac to develop new COVID-19 vaccines. Shares rose 0.7%.
Commodity trading and mining group Glencore GLEN, -1.22% on Wednesday reported that its 2020 coal and copper production was in line with its guidance. Shares fell over 1%.
