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European Markets Close On Firm Note As Stocks Rebound After Recent Sell-off

European stocks closed notably higher on Friday, rebounding from losses in the previous session, amid renewed optimism about a potential coronavirus vaccine and on bargain hunting at some key counters from across various sectors.

Upbeat U.S. retail sales data for the month of September helped as well.

Meanwhile, worries about the surge in coronavirus cases and news about fresh lockdown measures in several countries continued to weigh on sentiment.

The pan European Stoxx 600 firmed up 1.26%. The U.K.'s FTSE 100 advanced 1.49%, Germany's DAX climbed 1.62% and France's CAC 40 moved up 2.03%, while Switzerland's SMI spurted 1.38%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Netherlands, Norway, Poland, Portugal, Spain, Sweden, Turkey and Ukraine closed with strong gains.

Greece, Iceland and Ireland posted modest gains, while Russia closed weak.

Automobile stocks were in demand after industry data showed car registrations across the European Union grew 3.1% on a yearly basis in September.

In the UK market, Rolls-Royce Holdings soared nearly 14%. Smurfit Kappa Group moved up 5%, while Just Eat Takeaway and Experian gained 4% and 3.85%, respectively.

Relx, Schrodders, Melrose, Burberry Group, Smith Ds, JD Sports Fashion, Scottish Mortgage, Smiths Group, CRH, Standard Chartered, M&G and GlaxoSmithKline moved up by 2.5 to 3.6%. Natwest Group, Ocado and HSBC Holdings also rose sharply.

Among the losers, Land Securities slid 2.8% and Barratt Developments declined 2.4%, while BT Group, Tayloer Wimpey and British Land Co. ended lower by 1.5 to 1.75%.

In the German market, Wirecard soared more than 21%. Thyssenkrupp ended stronger by over 11% on reports that privately-held Liberty Steel Group will make an offer for all of the ailing steel unit of the company.

Daimler gained more than 5.5% on better than expected results. The automaker also said it expects positive impact for the remainder of the year 2020.

MTU Aero, Continental, Deutsche Bank, HeidelbergCement, Volkswagen, BASF, Adidas and Covestro moved up 2 to 4%.

In France, shares of luxury-goods maker LVMH zoomed more than 7% thanks to a surge in demand the third aquarter. Peugeot gained about 5.5%. Renault also rose more than 5%. Airbus Group, Kering, Publicis Groupe, Safran, ArcelorMittal, Technip, Michelin, Valeo, Hermes International and Societe Generale were among the other major gainers.

In economic releases, Eurozone consumer prices declined for the second straight month in September, as initially estimated, final data from Eurostat revealed.

Consumer prices decreased 0.3%on a yearly basis, following a 0.2% drop in August. The statistical office confirmed the flash estimate released on October 2. A similar lower rate was last seen in April 2016.

Another data from Eurostat showed the Euro area trade surplus increased in August as the growth in exports exceeded the rise in imports.

Exports grew 2% on a monthly basis and imports advanced 0.5%. However, exports and imports continued to stay below the pre-crisis level, Eurostat said. Compared to February, the month before restrictions were imposed, both exports and imports were down by 11% and 10.7%, respectively.

The trade surplus rose to a seasonally adjusted EUR 21.9 billion from EUR 19.3 billion in July.

On the Brexit front, British PM Boris Johnson urged UK businesses to prepare for no deal. The European Union Commission president Ursula von der Leyen announced that negotiations would continue next week, although a spokesperson for the British prime minister said talks with the EU were over unless the bloc changed its negotiating position.

On the vaccine front, Pfizer Chairman and CEO Albert Bourla said the drug giant will apply for emergency use of the Covid-19 vaccine it is developing with BioNTech (BNTX) soon after the safety milestone is achieved in the third week of November.

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