European stocks rose on Friday and headed for their best weekly performance in seven months as strong earnings reports helped offset investor concerns over inflation and higher interest rates.
Investors were also reacting to news that U.S. President Joe Biden signed legislation to temporarily raise the government’s debt limit to $28.9 trillion, pushing back the deadline for debt default to December from mid-October.
The pan European Stoxx 600 edged up 0.3 percent to 467.39 after rising 1.2 percent on Thursday.
The German DAX and France’s CAC 40 index were up around 0.3 percent while the U.K.’s FTSE 100 was up 0.2 percent.
Banks topped the gainers list after JPMorgan Chase, Bank of America, Wells Fargo, Citigroup and Morgan Stanley — all have beaten quarterly earnings expectations.
Barclays, BNP Paribas, Societe Generale and Deutsche Bank jumped 2-3 percent.
Automakers also gained ground even as industry data showed European new car registrations declined for a third month in a row in September.
Passenger car registrations shrank 23.1 percent year-on-year to 718,598 units in September after a 19.1 percent fall in August, data from the European Automobile Manufacturers’ Association revealed.
Swiss banking software firm Temenos slumped 14 percent after missing third-quarter revenue expectations.
German fashion retailer Hugo Boss advanced 1.6 percent. The company raised its outlook for the current year after reporting over 40 percent growth in group sales for the third quarter, mainly due to the particularly strong development of business in Europe and America.
Cloud computing services company OVHcloud rose about 2 percent in its stock market debut in Paris.
BP Plc and Royal Dutch Shell both rose over 1 percent as Brent oil, the global oil benchmark crossed the $85 mark — the highest level since October 2018.
Jupiter Fund Management jumped 3 percent. The asset manager reported a rise in assets under management as positive investment performance offset net outflows.
Pearson plunged more than 10 percent. The publication company said that higher-education sales fell 7 percent in the nine months through September, partly due to lower enrollments at community colleges.
Anglo-Australian mining giant Rio Tinto lost nearly 2 percent. The company cut its 2021 iron ore shipments forecast, citing a tight labour market.
Market Analysis
European Shares Rise On Earnings
2021-10-15 09:53:44
