European Stocks Climbing Higher, Look Set To End Week On Firm Note

European stocks are up firmly on Friday and look set to end the week on a positive note, amid renewed optimism over China’s stimulus moves, and on expectations of more interest-rate cuts by the Fed and other central banks.

Investors are also digesting the latest batch of economic data, and await some key reports from the U.S.

The pan European Stoxx 600 is up nearly 0.3%. The U.K.’s FTSE 100 is climbing 0.45%, Germany’s DAX is up 0.78% and France’s CAC 40 is gaining 0.25%, while Switzerland’s SMI is up 0.13%.

On the economic front, France’s consumer price inflation eased in September to the lowest level in more than three years amid a fall in energy prices, a provisional estimate from the statistical office INSEE showed. A separate official report showed that producer prices increased for the second straight month in August.

France’s consumer price index climbed 1.2% year-over-year in September, slower than the 1.8% rise in the previous month. Economists had expected inflation to ease to 1.6%. On a monthly basis, consumer prices fell 1.2% in September, reversing a 0.5% rise in August.

EU-harmonised inflation also softened to 1.5% from 2.2% in the prior month. Monthly, the HICP showed a decrease of 1.2%.

In a separate report, the statistical office revealed that industrial producer prices in the home market rose 0.2% month-on-month in August, slightly slower than the 0.3% increase in the previous month. On an annual basis, the decline in producer prices deepened somewhat to 6.3% from 5.7% in July.

Data released earlier in the day showed Germany’s Unemployment rate steady at 6% on expected lines. The number of unemployed individuals however rose by 17,000 in September 2024 versus 12,000 that the markets had anticipated.

In the UK market, Burberry Group is climbing about 5.5%. Prudential is up nearly 3% on reports the firm is close to finalizing a 15-year partnership with Indonesia’s largest Islamic lender, PT Bank Syariah Indonesia, in a deal reportedly worth several hundred million dollars. Prudential has also reportedly agreed to acquire full ownership of Prudential Zenith Life Insurance, its joint venture in Nigeria.

Frasers Group, Croda International, Easyjet, Convatec Group, Smith & Nephew, J Sainsbury, Entain, WPP, IAG, Melrose Industries, 3i Group, Halma, Associated British Foods, Whitbread and BT are gaining 1 to 2.2%.

Flutter Entertainment is declining 2.5%, while RightMove and Fresnillo are down 1.4% and 1.1%, respectively.

In the German market, BASF is up 6% and Brenntag is rising 5.5%. Porsche, Infineon, Siemens Healthineers, Continental, Volkswagen, Mercedes-Benz, BMW and Bayer are up 3 to 4.5%.

Zalando, Puma, Daimler Truck Holding, Adidas, Covestro, Vonovia, Sartorius and Henkel are also notably higher.

Siemens Energy, Merck, HeidelbergCement, Rheinmetall and SAP are weak.

In the French market, STMicroElectronics is surging 4.3%. Stellantis, Kering, Renault and Teleperformance are gaining 3 to 4%.

Edenred is up 2.5%. Essilor, Carrefour, Capgemini, Societe Generale, Air Liquide, Pernod Ricard, LVMH, Michelin and ArcelorMittal are up 1 to 2%.

Dassault Systemes, Schneider Electric and Safran are down 1.2 to 1.7%. L’Oreal and AXA are also notably lower.

In the Swiss market, SIG Group and Clariant are rising 3.5% and 3.1%, respectively. Adecco is up nearly 3%. Tecan Group, Lindt & Spruengli, Avolta, Straumann Holding, Barry Callebaut, Flughafen Zurich, Richemont and Sonova are also up with strong gains.

ABB, Holci, Lonza Group, Georg Fischer, Belimo Holding, Schindler Ps and Schindler Holding are notably lower.