European stocks closed higher on Thursday thanks to impressive earnings updates from several companies from across the region. Investors largely shrugged off concerns about the outlook for interest rates and chose to focus on corporate news.
The pan European Stoxx 600 climbed 0.84%. The U.K.’s FTSE 100 gained 0.73%, Germany’s DAX advanced 0.81% and France’s CAC 40 surged 1.13%, while Switzerland’s SMI ended 0.47% up.
Among other markets in Europe, Austria, Belgium, Finland, Ireland, Netherlands, Norway, Poland, Portugal, Spain and Sweden ended higher.
Denmark, Greece, Iceland, Russia and Turkiye closed weak.
In the UK market, Auto Trader Group rallied 8.5% after posting strong revenue growth. Spirax-Macro Engineering, RightMoe, Kingfisher, Persimmon, Expeian, Mondi, Halma, Natwest Group, Smurfit Kappa Group, SSE, Unilever and Barratt Developments gained 2 to 4%.
Taylor Wimpey rallied sharply after backing its 2023 view. AstraZeneca climbed 2.6% after reporting better-than-expected Q3 results and raising its profit outlook.
Flutter Entertainment tanked more than 10% after the online betting firm said it has finalized its plans to list in the U.S. and delist from Euronext Dublin, the Irish Stock Exchange.
Carnival and Entain both ended lower by about 1.4%. 3i, Anglo American Plc, Imperial Brands and GSK shed 0.7 to 1%.
In the German market, Siemens Energy gained more than 6%. Henkel surged nearly 4% after raising its guidance for the year.
Merck climbed 4% after reporting better-than-expected profit. Sartorius, Adidas, Siemens, BASF, Deutsche Post, Zalando and Vonvoia gained 2 to 4%.
Deutsche Telekom gained after the company announced its third revision to its earnings outlook for 2023, following a strong Q3 performance.
Hannover Rueck drifted down 2.3%. Porsche, Munich RE, Qiagen, Fresenius and Siemens Healthineers lost 0.5 to 1%.
In Paris, Schneider Electric climbed more than 8% after its long-term outlook announcement.
WorldLine gained about 5% and Legrand surged 3.1%. Veolia gained nearly 3% after reporting a surge in operating profit for the first nine months of 2023.
Saint Gobain, LVMH, Dassault Systemes, Air Liquide, Alstom, Hermes International, Pernod Ricard, Engie, Unibail Rodamco, Essilor, Capgemini and Kering gained 1 to 2.8%.
Airbus Group ended nearly 2% down on lower-than-expected third-quarter earnings. ArcelorMittal ended lower by 1.7% after a downward revision in demand guidance for Europe. Stellantis and Carrefour posted moderate losses.
On the economic front, the UK housing market activity continued to be weak as demand and sales metrics remained negative and near-term sales expectations signaled subdued activity over coming months, survey data published by the Royal Institution of Chartered Surveyors showed on Thursday.
The new buyer enquiries index posted a net balance of -28 percent in October, marking the eighteenth negative score. Nonetheless, this was the least negative score since May.
Bank of England’s Chief Economist Huw Pill said the monetary policy needs to be restrictive in order to bring inflation back to the target.
At the Institute of Chartered Accountants in England and Wales on Thursday, Pill said “Having established monetary policy in restrictive territory it is not the case that we need to raise rates in order to bear down on inflation.”
“Sustaining rates at their current level will continue to bear down inflation,” said Pill.
Markets anticipate first rate cut in August 2024. Pill said “It does not seem totally unreasonable”.
Market Analysis
European Stocks Close Higher Again On Earnings News
2023-11-09 18:05:31
