European shares dipped on Friday morning, pausing after their
best start to the year since regional benchmarks began in late 1986,
while Airbus rallied after posting a sharp rise in operating earnings.
Shares in Airbus were up 6.1%, representing a gain in market value of €2.5bn, roughly the price of six A380 superjumbos.
Shares in International Airlines Group surged 4.4% after the owner of British Airways upgraded its 2015 profit forecast by more than 20%, after reporting a 81% jump in profit last year as oil prices tumbled.
The 50% drop in crude prices since mid-2014 has greatly reduced input costs for airlines overall, as jet fuel accounts for around a third of the sector's operating costs.
Lloyds Banking Group rose 1.2% after it
said it will pay its first dividend in six years after reporting a rise
in profit and improvement in its capital strength.
Bucking the trend, UCB fell 3.5% after the Belgian pharmaceutical company profit outlook missed analyst expectations.
About two-thirds into Europe's earnings season, 55% of companies have met or beaten analyst forecasts. Fourth-quarter earnings are set to grow 14.9%, according to Thomson Reuters I/B/E/S, which would be Europe's best earnings season in three-and-a-half years.
At 11:00, the FTSEurofirst 300 index of top European shares was down 0.1% at 1 556.19 points, after hitting a fresh seven-year high earlier. The broader STOXX 600 was also down 0.1%.
"The rally in stocks is so strong that we could see a capitulation of the shorts at some point, which would push the market even higher. Clearly some indexes have reached frothy valuation levels, but we're still long in the short term."
European stocks are up 14 percent so far this year, boosted by the prospect of the European Central Bank (ECB)'s quantitative easing programme set to start in March.
The rally has left the STOXX 600 trading at the highest valuation multiple in 11 years, and deep in 'overbought' territory on technical charts.
Shares in International Airlines Group surged 4.4% after the owner of British Airways upgraded its 2015 profit forecast by more than 20%, after reporting a 81% jump in profit last year as oil prices tumbled.
The 50% drop in crude prices since mid-2014 has greatly reduced input costs for airlines overall, as jet fuel accounts for around a third of the sector's operating costs.
Bucking the trend, UCB fell 3.5% after the Belgian pharmaceutical company profit outlook missed analyst expectations.
About two-thirds into Europe's earnings season, 55% of companies have met or beaten analyst forecasts. Fourth-quarter earnings are set to grow 14.9%, according to Thomson Reuters I/B/E/S, which would be Europe's best earnings season in three-and-a-half years.
At 11:00, the FTSEurofirst 300 index of top European shares was down 0.1% at 1 556.19 points, after hitting a fresh seven-year high earlier. The broader STOXX 600 was also down 0.1%.
"The rally in stocks is so strong that we could see a capitulation of the shorts at some point, which would push the market even higher. Clearly some indexes have reached frothy valuation levels, but we're still long in the short term."
European stocks are up 14 percent so far this year, boosted by the prospect of the European Central Bank (ECB)'s quantitative easing programme set to start in March.
The rally has left the STOXX 600 trading at the highest valuation multiple in 11 years, and deep in 'overbought' territory on technical charts.
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