LONDON (ShareCast) - -Markets up on strong corporate earnings
-US GDP below expectations
-Spanish credit rating downgrade

FTSE-100: +0.49%
Dax-30: +0.91%
Stoxx 600: +0.67%
Cac-40: +1.14%
Ibex 35: +1.69%
FTSE MIB: +1.85%

Strong results from major companies pushed most European indices higher despite weaker than expected US economic output and continuing fears over Spanish debt.

Europe’s biggest construction company, French outfit Vinci, rose 4.5% after announcing first quarter sales that came in 6% ahead of the same period of 2011. This was significantly ahead of analyst forecasts and, given the scale of Vinci’s operations, suggests Europe’s economy may be more robust than some had thought.

US GDP figures surprised on the downside, with the first quarter showing an annualised rate of 2.2% growth, below the 2.5% market expectation.

Spain had its sovereign credit rating cut by Standard & Poor’s. The credit rating agency is concerned over the country’s weak banking sector.

Spain’s unemployment rate rose to 24.4% according to the National Statistics Office. That’s the highest level for 17 years.

COMPANIES

In the wake of Vinci’s strong results, the construction and materials sector was the strongest performer on the Stoxx Europe 600, up 2.47%. Food and beverage stocks were the weakest, down 0.64%.

Irish cement giant CRH climbed 3.7% after a positive note from analysts at JPMorgan Cazenove.

HeidelbergCement, CRH’s German rival, gained 3.7% on sector momentum.

OTHER MARKETS

At 16:35 London time a futures contract on a barrel of Brent crude was worth $119.23, a fall of 0.58%.

The euro had gained 0.23% against the dollar by 16:57 in London, to be worth $1.3249.

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