Results Boost European Shares as Indivior Plunge Puts Pressure on UK Mid Caps
LONDON — European shares rose early on Friday, starting September on a firm footing after three months of losses as financials rose and an update from Vivendi boosted media stocks, though a record plunge in pharma firm Indivior weighed on British mid caps.
The pan-European STOXX 600 index was up 0.5 percent, as were euro zone blue chips, with investors awaiting a U.S. jobs report later in the session which could provide clues on the Federal Reserve’s next decision on interest rates.
Germany’ DAX gained 0.3 percent and Britain’s FTSE 100 rose 0.2 percent, though a 35 percent slump in Indivior’s shares put pressure on the FTSE 250 which retreated 0.2 percent.
Indivior’s shares were set for their biggest one-day loss on record after the firm said it would appeal against a U.S. court ruling that generic drug maker Dr Reddy’s had not infringed its patents, potentially opening the way to a rival to the firm’s Suboxone Film opiod addiction treatment.
On an otherwise relatively quiet day for corporate news, shares in Swedish vehicle maker Volvo jumped 6.7 percent and were on track for their biggest one-day gain in more than four months after setting new financial targets.
Results drove some sizeable moves, with shares in French media firm Vivendi rising 5.8 percent after the group confirmed its outlook, reporting better than expected profit growth for the year. Europe’s media sector was the top-gaining sector, up 1 percent.
French telecoms stocks Iliad edged 1.6 percent higher on the back of robust first half earnings, which saw profit rise 22 percent thanks to winning new subscribers.
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