European stocks ended broadly higher on Wednesday with investors focusing on earnings reports, updates about progress in vaccination programme, and political developments in Italy.
In Italy, stocks moved higher, reacting to news that former European Central Bank President Mario Draghi will form a new unity government in the country.
The pan European Stoxx 600 ended up 0.33%. Germany’s DAX advanced 0.71%, the U.K.’s FTSE 100 edged down 0.14% and France’s CAC 40 ended flat. Switzerland’s SMI ended lower by 0.26%.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Portugal, Spain, Sweden and Turkey closed higher. Iceland ended flat, while Poland and Russia drifted lower.
In the UK market, Vodafone gained nearly 6% after re-affirming its earnings targets. Aviva rallied 3.7% and M&G gained 2.3%. BT Group, Royal Dutch Shell, Ocado Group, Persimmon, Scottish Mortgage, BP, Barclays, WPP and Schrodders also ended with strong gains.
Glencore fell after the company said its copper and cobalt production fell in 2020. However, the stock recovered well to end the day with a gain of nearly 1%.
On the other hand, GlaxoSmithKline shares lost more than 6% after the company reported a near 50% drop in fourth-quarter net profits and said it expects profits to fall this year amid higher research costs.
Rolls-Royce Holdings, Melrose, Diageo and Hikma Pharmaceuticals also declined sharply.
In the French market, Publicis Groupe shares moved up sharply after the company reported better-than-expected organic growth in the fourth quarter. The company said that it will hand back all of the salary reductions that 6,000 higher-earning staff voluntarily took during the worst of the coronavirus downturn.
Renault gained more than 4.5%. Engie, Michelin, Valeo, Veolia, Airbus, Saint Gobain and Safran also closed on a positive note.
In Germany, Daimler gained more than 8%. Volkswagen gained nearly 2.5%, while Siemens, Deutsche Telekom, Lufthansa, Continental, Covestro and BASF ended higher by 1 to 2%.
Thyssenkrupp, Deutsche Wohnen, Adidas, Fresenius Medical Care and Fresenius ended lower by 1 to 2.3%.
In economic releases, the euro area private sector contracted further in January amid the Covid-19 pandemic as the decline in services was only partially offset by the growth in manufacturing sector, final survey results from IHS Markit showed.
The final composite output index dropped to 47.8 in January from 49.1 in the previous month but was above the flash score of 47.5.
Eurozone consumer prices increased for the first time in six months in January, flash data from Eurostat showed. The harmonized index of consumer prices climbed 0.9% year-on-year in January, reversing a 0.3% fall in December. Economists had forecast an annual growth of 0.5%.
The UK service sector contracted at the fastest pace in eight months in January due to the impact of restrictions related to the Covid-19 pandemic on trade and temporary business closures amid the third national lockdown, final survey results from IHS Markit showed Wednesday.
The Markit/Chartered Institute of Procurement & Supply services Purchasing Managers’ Index plunged to 41.2 from 50.4 in December. A score below 50 indicates contraction. The flash score was 40.6.
Market Analysis
European Stocks Close Higher Again
2021-02-03 18:52:05
