Title: European Stocks Largely Higher; BP Raises Buyback Despite Russia Loss

May 03, 2022 03:53AM ET

By: AnalysisWatch

European stock markets traded mostly higher Tuesday, with oil company BP leading corporate earnings ahead of policy meetings at major central banks, including the Federal Reserve.

At 4:00 AM ET, Germany's DAX traded 0.8% higher and France's CAC 40 rose 1%, while the U.K.'s FTSE 100 fell 0.1%.

European stock markets are trying to shake off April's weak results, with major indexes weighed down by concerns about slowing economic growth, rising inflation and Russia's ongoing war in Ukraine.

British energy giant BP's exit from Russia cost it dearly in the first quarter. The write-down of its stake in oil giant Rosneft resulted in a $20.38 billion loss.

But shares rose 2.2% after the company's adjusted profit jumped more than 50% from the previous quarter, allowing it to boost its buyback program by $2.5 billion in the next quarter, the eighth consecutive quarter it has done so.

HSBC shares rose 1.9% after the U.K. bank's largest shareholder, Chinese insurance giant Ping An, pushed for a split of the lender, possibly spinning off its Asian business, which generates two-thirds of pretax profits, to improve returns.

On the flip side, shares of Galp Energia fell 4.6%, despite the Portuguese oil and gas company reporting a strong rise in first-quarter profit, boosted by rising global crude prices and higher production.

Logitech shares fell 1.3% after the Swiss technology company reported a 20% drop in fourth-quarter revenue and cut its outlook for fiscal 2023 by removing its estimate of annual revenue and profits that would have been generated in Ukraine and Russia.