European Markets Close Higher On Encouraging Earnings News

European markets closed higher on Wednesday, reacting positively to some encouraging earnings announcements and economic data.

Worries about a surge in coronavirus cases across the globe weighed on sentiment and limited markets’ upside. Investors looked ahead to the ECB rate decision for directional cues.

The European Central Bank holds a policy meeting on Thursday, with investors hoping the meeting will give more clarity about the central bank’s stimulus plans.

The pan European Stoxx 600 climbed 0.65%. The U.K.’s FTSE 100 ended 0.52% up, Germany’s DAX gained 0.44% and France’s CAC 40 moved up 0.74%, while Switzerland’s SMI advanced 1.17%.

Among other markets in Europe, Belgium, Denmark, Finland, Iceland, Ireland, Netherlands, Portugal, Spain and Sweden closed higher.

Czech Republic, Greece, Norway, Poland, Russia and Turkey ended weak, while Austrial closed flat.

In the UK market, Smith & Nephew gained about 3.7%. Hikma Pharmaceuticals gained about 3% after announcing it has resumed the launch of its generic version of GlaxoSmithKline’s asthma drug Advair Diskus in the U.S.

Burberry Group, Imperial Brands, Entain and Admiral Group gained 2 to 3%. Aveva Group, JD Sports, GlaxoSmithKline, AstraZeneca, British American Tobacco, BAE Systems, ICP and Reckitt Benckiser also rose sharply.

On the other hand, Bunzl, B&M, Just Eat Takeaway, Auto Trader Group, United Utilities, Weir Group and British Land Group delined sharply.

In the German market, Bayer and Fresenius both gained more than 3%. Linde, Lufthansa, Covestro, Fresenius Medical Care, Henkel and SAP gained 1 to 2%.

Volkswagen, RWE, Deutsche Bank, Vonovia, BME and E.ON were among the notable losers.

In France, Carrefour gained about 5% after it reported higher first-quarter sales and announced that it is launching a share buyback program worth at least €500 million.

Kering moved up sharply after saying its sales in the first-quarter topped forecasts as leading brand Gucci returned to growth.

LVMH, Hermes International, Atos, ArcelorMittal, LOreal, WorldLine and Essilor also ended with strong gains. BNP Paribas, Credit Agricole and Societe Generale ended notably lower.

In economic news, data from the Office for National Statistics revealed U.K. consumer prices advanced 0.7% year-on-year in March, faster than the 0.4% increase seen in February.

U.K. average house prices grew 8.6% year-on-year in February, faster than the 8% increase in January, another report showed. This was the fastest growth since October 2014.