European Shares Rise After Earnings Beat

European stocks were mostly higher on Wednesday, with encouraging earnings and hopes for a strong economic recovery offering some support.

Caution prevailed as investors awaited U.S. inflation data due later in the day for clues on monetary policy going forward.

The pan European Stoxx 600 inched up 0.3 percent to 437.89 after tumbling 2 percent on Tuesday.

The German DAX edged up 0.1 percent and France’s CAC 40 index was marginally higher while the U.K.’s FTSE 100 was up 0.7 percent after the release of GDP figures.

U.K. gross domestic product shrank 1.5 percent sequentially in the first quarter, reversing a 1.3 percent rise in the fourth quarter, the Office for National Statistics reported. Economists had forecast a sequential drop of 1.6 percent.

GDP grew 2.1 percent month-on-month in March as schools and some part of the economy reopened through the month.

Spirits maker Diageo rallied 3 percent. The company restarted its capital return program and said that it expects to report organic operating growth of at least 14 percent in fiscal 2021.

UDG Healthcare shares soared 21 percent. The pharmaceuticals services company has agreed to a 2.61 billion-pound ($3.69 billion) takeover by Clayton, Dubilier & Rice.

Just Eat Takeaway.com NV tumbled 3.7 percent after rival food delivery firm Delivery Hero SE announced plans to re-enter its home market of Germany next month.

EDF Group shares climbed 2.6 percent. The French power group confirmed its full-year guidance after sales rose in the first quarter.

German lender Commerzbank surged 6.3 percent after it swung to a first quarter profit, beating expectations.

SGL Carbon rallied 3.2 percent. The carbon and graphite product manufacturing company confirmed guidance for the full year 2021, with sales revenue to be EUR 920 million to EUR 970 million.

Utility RWE advanced 1.5 percent after backing its 2021 view.

Deutsche Telekom rose about 2 percent. The telecommunications company raised its profit guidance for 2021 after a strong showing by its businesses in the United States and Europe in the first quarter.

Bayer jumped 4 percent. The pharmaceutical and chemical conglomerate backed its outlook for the year after reporting a rise in quarterly net profit.