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European Shares Rise As Evergrande Worries Ease

stockmarkets jan22 22oct21 lt

European stocks advanced on Friday after China Evergrande Group reportedly supplied funds to pay interest on a U.S. dollar bond, helping ease contagion fears.

The pan European Stoxx 600 rose half a percent to 472.25 after declining 0.1 percent on Thursday.

The German DAX climbed 0.6 percent, France's CAC 40 index rallied 1 percent and the U.K.'s FTSE 100 was up 0.3 percent.

In corporate news, Swedish mining firm Boliden slumped more than 5 percent after its third-quarter operating profit missed forecasts.

Hygiene products maker Essity gained 3 percent after setting a new target to ramp up sales.

Miners rebounded in London, with Antofagasta rallying 3.2 percent and Rio Tinto rising 1.4 percent.

London Stock Exchange tumbled 3.4 percent after a warning that "supply chain pressures may impact the timing of some technology spend this year."

Intercontinental Hotels lost 2.7 percent. The hotel chain said its revenue per available room was 21 percent below 2019 levels in the third quarter.

JD Sports Fashion gained 2.4 percent after it acquired 80 percent of Greece-based Cosmos Sport S.A.

French cosmetics major L'Oreal soared 6.2 percent after posting better-than-expected revenue growth for the third-quarter.

Remy Cointreau added 1.3 percent after the drinks maker forecast an "exceptional" current operating profit growth in the first half of its 2021/2022 fiscal year.

Renault declined 1.4 percent. The carmaker warned that its production losses this year would be far larger than previously forecast because of a global chip shortage.

In economic releases, the flash euro zone composite output purchasing managers index (PMI) dropped to a six-month low of 54.3 in October from 56.2 in September, according to IHS Markit. The flash services PMI dropped to 54.7 from 56.4, also a six-month low.

Elsewhere, the seasonally adjusted IHS Markit/CIPS U.K. manufacturing PMI unexpectedly improved to 57.7 in October versus 55.8 expected while the services PMI came in at 58.0 versus 54.5 expected.

U.K. retail sales volume including auto fuel decreased 0.2 percent month-on-month in September, after easing by revised 0.6 percent in August, the Office for National Statistics said. Sales were forecast to grow 0.5 percent.

Separately, survey results from market research group GfK showed that U.K. consumer confidence weakened for the third straight month in October.

The corresponding index fell to -17 from -13 in September. The expected reading was -16.

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