European stocks closed higher on Tuesday, with investors continuing to react positively to the U.K.’s decision to scrap most of Prime Minister Liz Truss’s fiscal polices, and on new EU measures to tackle energy prices.
Data showing an improvement in German economic sentiment in October helped as well in lifting the mood.
A firm trend in the U.S. market thanks to upbeat earnings updates from Goldman Sachs, Johnson & Johnson, and a few other top name companies, contributed as well to the positive undertone in the European markets.
Shares of automakers moved higher after industry data showed Europe’s new car registrations increased for the second straight month in September.
New passenger car registrations grew 9.6% on a yearly basis, following August’s 4.4% increase, according to data published by the European Manufacturer’s Association. This was the second consecutive increase in sale.
The pan European Stoxx 600 gained 0.34%. The U.K.’s FTSE 100 ended higher by 0.24%, Germany’s DAX climbed 0.92% and France’s CAC 40 moved up 0.44%. Switzerland’s SMI gained 0.76%.
Among other markets in Europe, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Norway, Poland, Russia, Spain and Sweden closed with sharp to moderate gains.
Austria, Ireland and Netherlands posted modest gains, while Portugal and Turkiye ended weak.
In the UK market, Smurfit Kappa Group rallied nearly 6.5%. Rolls-Royce Holdings, Smith (DS), United Utilities Group, CRH, Spirax-Sarco Engineering, Rentokil Initial, Pershing Square Holdings, Halma, Ashtead Group and Smith & Nephew gained 2 to 4%.
Harbour Energy and Centrica shed 4.3% and 4%, respectively. Segro, Barratt Developments, Airtel Africa, Rio Tinto, ICP and HSBC Holdings lost 1 to 2.2%.
In the German market, HeidelbergCement rallied nearly 4%. Daimler gained about 3.5%. Deutsche Bank, Sartorius, Deutsche Post, Siemens Healthineers, Covestro, Volkswagen and MTU Aero Engines gained 2 to 3.5%.
In Paris, Legrand, Saint Gobain, Faurecia, Vivendi, Schneider Electric, Credit Agricole, BNP Paribas, Sodexo, Airbus, Societe Generale, Safran, Valeo and Bouygues gained 1.5 to 3%.
Publicis Groupe rallied sharply after the world’s third-biggest advertising group raised its 2022 guidance once again after posting better-than-expected Q3 organic revenue growth.
Sweden’s Avanza Bank soared 12% after reporting better-than-expected third-quarter earnings.
European Stocks Close On Firm Note Again
2022-10-18 17:25:47
