European Stocks Close Higher

European stocks closed higher on Wednesday as fairly strong earnings updates outweighed concerns about slowing growth and worries about inflation.

Data showing an unexpected acceleration in Chinese export growth helped as well.

Traders digested a report from the Labor Department showing consumer prices in the U.S. increased by slightly more than anticipated in the month of September. The report said the consumer price index climbed by 0.4% in September after rising by 0.3% in August. Economists had been expecting another 0.3% increase.

The pan European Stoxx 600 climbed 0.7%. The U.K.'s FTSE 100 gained 0.16%, Germany's DAX moved up 0.68% and France's CAC 40 advanced 0.75%, while Switzerland's SMI jumped 0.49%.

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

Austria, Czech Republic, Greece, Poland, Russia, Spain and Turkey ended weak.

In the UK market, Barratt Developments climbed 6.3%. While issuing a trading update for the period from 1 July to 10 October 2021, the housebuilder said the positive start to the new fiscal year has continued in recent weeks with private reservations remaining strong. The Group remains on track to deliver both its fiscal 2022 and medium term targets.

Ocado Group, Taylor Wimpey, Aveva Group, St. James Place, Croda International Plc, Johnson Matthey, Persimmon, Burberry Group, Ashtead Group, Bunzl, RightMove, DCC, Halma and Fresnillo gained 2 to 4.1%.

Man Group shares rallied sharply after the active management business reported a further increase in funds under management in the third quarter, driven by very strong net inflows and solid investment performance.

Standard Chartered, BT Group, IAG, Informa, Barclays Plc, Aviva, Lloyds Banking Group, Prudential, Rio Tinto, BHP Group, Admiral Group, HSBC Holdings and BP lost 1 to 2.7%.

Just Eat Takeaway.com shares declined after delivering weaker-than-expected third-quarter orders.

In the French market, Cap Gemini, Dassault Systemes, Atos, Hermes International, Teleperformance, WorldLine, LOreal and Air Liquide gained 1.5 to 4%.

Luxury goods maker LVMH moved up sharply after announcing improved earnings for the third quarter, with 40 percent organic revenue growth across its brands compared to 2020.

French energy company Spie climbed more than 8% after withdrawing from a race to buy utility company Engie's services unit.

Sodexo, Valeo, AXA, Renault, Thales, BNP Paribas, Bouygues, Societe Generale and Air France-KLM shed 1 to 3%.

In Germany, SAP gained more than 4% after the German software group said it is seeing strong growth in current cloud backlog across its cloud portfolio.

Sartorius, Zalando and Porsche Automobil gained 3 to 4%. Volkswagen, Puma, Merck, Infineon Technologies, RWE, Siemens Healthineers, Linde, Symrise and Adidas moved up 1 to 2.7%.

Deutsche Bank declined more than 4%. Allianz, Bayer and HeidelbergCement lost 1 to 1.4%.

In economic news, Eurostat data released earlier in the day showed Eurozone industrial production fell in August due to supply-chain bottlenecks and slowing global trade.

Eurozone industrial output declined for the first time in three months in August, dropping 1.6% month-on-month, reversing a 1.4% rise in July. The pace of decline matched economists' expectations and this was the first fall since June.

On a yearly basis, industrial production grew 5.1%, slower than the 8% expansion in July but faster than the expected rate of 4.7%.

Germany's consumer price inflation accelerated to 4.1% in September from 3.9% in August, final data from Destatis showed. The latest inflation was the highest since December 1993, when the price growth was 4.3%.

U.K. gross domestic product grew 0.4% month-on-month in August, but slightly slower than the economists' forecast of 0.5%. GDP growth for July has been revised from 0.1% growth to a 0.1% fall, mainly because of downwardly revised data for the manufacture of motor vehicles, oil and gas, and improvements to how health output is measured.

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