logo
Plus   Neg
Share
Email

European Shares Rally As Voters Deliver Split Verdict On Trump

asian-up_07nov18-lt.jpg

European stocks rose sharply on Wednesday as investors digested the U.S. mid-term election results and looked ahead to the Federal Reserve's monetary policy announcement, due on Thursday.

The U.S. election results came in line with expectations, with Democrats seizing the House majority from President Donald Trump's Republican Party while Republicans retained control of the Senate.

The pan-European Stoxx Europe 600 index was up 1.2 percent at 366.88 in opening deals after declining 0.3 percent the previous day.

The German DAX was moving up 1.1 percent, France's CAC 40 index was up as much as 1.4 percent and the U.K.'s FTSE 100 was gaining 1.3 percent.

The British pound rose for the third straight session after reports that a Brexit deal could be agreed by the end of November.

British infrastructure group Balfour Beatty climbed 2 percent after it secured a place on two major highway projects.

Homebuilder Persimmon advanced 1.3 percent. Jeff Fairburn, Group Chief Executive, has been asked to leave the company after a row over his £75m pay award.

Retailer Marks & Spencer Group tumbled 3.4 percent. The company has warned of challenging trading conditions for fiscal 2019 after reporting a 7.1 percent rise in first-half profit before tax.

ITV shares slumped 4 percent. The media firm has warned of a softening in advertizing revenue in the final three months of the year.

Dutch supermarkets and eCommerce company Ahold Delhaize N.V. soared 7 percent. The company increased free cash flow guidance for 2018 to at least 2.0 billion euros and said it is firmly on track to realize at least 5 billion euros in net consumer online sales by 2020.

Spanish banks BBVA, Santander and Sabadell were up around 3 percent after the Supreme Court ruled that lenders were not required to pay stamp duty on mortgages.

BMW Group shares fell 1.6 percent in Frankfurt. The automaker's third-quarter net profit declined by nearly 24 percent year-over-year to 1.405 billion euros due to higher research and development expenses.

Adidas lost 2 percent. The sports shoes, clothing and accessories giant has lowered its sales growth guidance for the year.

French lender Crédit Agricole declined 1.2 percent despite its Q3 profit rising in line with expectations.

Veolia Environnement shares advanced 1.4 percent. The resource management firm confirmed its outlook for FY18 and FY19 after reporting a 15.5 percent increase in its nine-month current net income.

In economic releases, euro area retail sales held unchanged in September after growing in the previous month, preliminary data from Eurostat revealed. Retail sales were flat sequentially, while economists expected a modest 0.1 percent gain.

Elsewhere, U.K house price inflation eased sharply in October to its lowest level since March 2013, survey data from IHS Markit and Lloyds Banking Group unit Halifax showed.

The Halifax house price index rose 1.5 percent year-on-year in the three months to October, which was sharply slower than the 2.5 percent increase in September. Economists had forecast a 1.3 percent climb.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT