European shares poised for quiet end to strong week, earnings loom

LONDON, July 14 (Reuters) – European shares were poised for
their best week in more than two months as investors piled back
into equities on signs that the world’s major central banks
would likely not tighten monetary policy as quickly as some had
feared.

The move on indexes on Friday was more muted as investors
hunkered down ahead of earnings reports from major US banks
including JPMorgan and Citigroup later in the day.

The pan-European STOXX 600 index rose 0.1 percent
while euro zone bluechips were little changed.

Firmer metals prices underpinned gains on mining stocks.

Miners were led higher by steel firms ArcelorMittal
, Outokumpu and Norsk Hydro which
rose after U.S. President Donald Trump said that he was
considering quotas and tariffs on Chinese steel dumping.

While a rise in bond yields has hit rate-sensitive sectors
such as utilities, banking stocks have instead
benefited and the sector was roughly flat as Swedish lender SEB
jumped 2.4 percent after its second-quarter profit
topped forecasts.

Swedish construction group Skanksa was the worst
performer on the STOXX 600, down more than 4 percent after it
warned that its second-quarter profit would be hit by project
writedowns in the U.S. and Britain.

European earnings get underway in earnest only later this
month. Overall, analyst are calling for about 9 percent
year-on-year earnings growth for top European firms, compared to
about 8 percent for the U.S., according to Thomson Reuters
I/B/E/S.

(Reporting by Kit Rees, Editing by Vikram Subhedar)

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