European stocks close higher on earnings optimism

(RTTNews) – European stocks closed higher on Thursday, extending gains from the previous session as optimism over strong earnings outweighed concerns over inflation and the Federal Reserve’s policy cut.

The minutes of the Federal Reserve’s last policy meeting confirmed that the central bank could begin a gradual reduction in its asset purchases as early as November.

Strong oil and copper prices pushed up energy and materials shares.

The pan-European Stoxx 600 index climbed 1.2%. Britain’s FTSE 100 gained 0.92%, Germany’s DAX jumped 1.4% and France’s CAC 40 jumped 1.33%, while Switzerland’s SMI gained 0.66%.

Among other European markets, Austria, Belgium, Finland, Greece, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain and Sweden closed with sharp to moderate gains.

The Czech Republic, Denmark and Turkey finished weak.

In the UK, BHP Group, Rio Tinto, Anglo American Plc, Glencore, IAG, Intermediate Capital Group and Antofagasta gain 3 to 4%.

Burberry Group, Whitbread, Polymetal International, Next, Ashtead Group, Segro, Smith (DS), Johnson Matthey, Halma, Smith & Nephew, Experian, Scottish Mortgage and Pershing Square Holdings also rebounded strongly.

Tesco and Admiral Group both ended down around 1.25%.

On the French market, ArcelorMittal, Kering, Schneider Electric, Cap Gemini, Teleperformance, Legrand, Saint Gobain, LOreal and LVMH gained 2 to 3%.

Publicis Groupe shares gained more than 2.5% after the company raised its outlook for 2021 after announcing organic growth of 11.2% in the third quarter, with double-digit growth in all regions.

In Germany, Siemens gained more than 3%. SAP, Infineon Technologies, Hello Fresh, Linde, Fresenius and Daimler climbed 2 to 2.8%. Zalando, Adidas, Vonovia, Bayer, Puma, Volkswagen and Siemens Healthineers also posted strong gains.

Sartorius’ share fell by more than 3%. Covestro, RWE and E.ON closed moderately lower.

Semiconductor company ASML rose nearly 4% and BE Semiconductor gained 3.7% after Taiwanese chip giant TSMC’s quarterly profit beat expectations.

Dutch navigation and digital mapping company TomTom climbed more than 4%, reversing early losses after warning of supply chain issues.

In economic news, Germany’s leading economic institutes raised their projections for economic growth for 2022, but lowered their projections for the current year citing supply bottlenecks in the manufacturing sector.

According to the autumn 2021 economic forecast, prepared jointly by Ifo Munich, RWI Essen, DIW Berlin, IfW Kiel and IWH Halle, gross domestic product is expected to grow by 2.4% this year instead of the 3.7% estimated in April. .

The projection for 2022 has been revised to 4.8% from 3.9%. For 2023, growth is estimated at 1.9%.

British household demand for secured loans is expected to decline further in the fourth quarter, the Bank of England’s Credit Conditions Survey showed on Thursday.

Lenders said demand for secured home purchase loans fell in the third quarter and is expected to fall further in the fourth quarter.

Data from the Federal Statistical Office showed that Swiss producer and import prices rose in September, rising 4.5% year-on-year. The producer price index increased by 2.9% year on year in September and import prices accelerated by 8.1%.

On a month-to-month basis, producer and import prices rose 0.2% in September.

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