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European Stocks Close Higher On Encouraging Earnings Updates

European stocks closed higher on Tuesday as strong earnings updates from the likes of UBS and Reckitt Benckiser helped investors shrug off fresh worries about China's property sector.

As inflation worries mount, investors looked ahead to a slew of central bank meetings in Europe, Japan and Canada this week for directional cues.

In China, Modern Land missed a bond payment, adding to worries about wider effects of the debt crisis at behemoth China Evergrande Group.

The Bank of Canada is set to announce its rate decision on Wednesday, while the Bank of Japan and the European Central Bank are scheduled to announce their policies on Thursday.

The pan European Stoxx 600 climbed 0.75%. The U.K.'s FTSE 100 gained 0.76%, Germany's DAX surged up 1.01% and France's CAC 40 advanced 0.8%, while Switzerland's SMI gained 0.69%.

Among other markets in Europe, Austria, Denmark, Finland, Iceland, Ireland, Netherlands, Spain, Sweden and Turkey closed higher.

Belgium, Czech Republic and Greece edged up marginally. Portugal and Russia closed weak, while Poland closed flat.

In the UK market, Reckitt Benckiser surged up 5.8%. The Lysol cleaning products maker has raised its full-year forecast after delivering better-than-expected sales for the third quarter.

BT Group gained nearly 6%. Whitbread shares gained 4.5% after the company said it is seeing a strong rebound in demand and is better placed than most to deal with cost increases.

Compass Group, Barratt Developments, B&M European Value Retail and Flutter Entertainment gained 3 to 4.5%.

IHG, Schrodders, Persimmon, Associated British Foods, IAG, JD Sports Fashion, Smurfit Kappa Group, Scottish Mortgage, Ashtead Group and ICP also rallied sharply.

Essentra shares gained about 5.5% after the plastics foam products company reported results that were in line with expectations and said it is expecting to deliver fiscal 2021 adjusted operating profit in the range of analysts' forecasts.

Entain tumbled more than 6%. Fresnillo shed about 4%. Polymetal International, Antofagasta, BAE Systems and Ocado Group declined 1.6 to 3%.

Petrofac shares regained some lost ground after plunging nearly 22%, but still ended the session with a loss of 12.05%. The stock drifted down after the company booked a first-half loss and unveiled plans to tap shareholders in a 180 million-pound ($247.54 million) fundraising.

In France, Safran gained 4%. Sodexo and Accor both ended nearly 3% up. AXA, Vinci, Unibail Rodamco, Kering, LOreal, Renault, Airbus, STMicroElectronics, Schneider Electric, ArcelorMittal, Technip, Bouygues and Faurecia gained 1 to 2.3%.

WorldLine, Orange and Vivendi ended notably lower.

In the German market, MTU Aero Engines, Deutsche Post, Continental, Deutsche Bank, Munich RE, SAP, Allianz, RWE, Siemens, Henkel and Zalando gained 1.4 to 3%.

Fresenius declined more than 3%. Fresenius Medical Care shed about 2% and Sartorius ended lower by 1%.

Swiss drug maker Novartis gained 1% after reporting a rise in adjusted operating profit. The company also said it has commenced a strategic review of the Sandoz Division.

UBS shares gained about 1.3% after the bank posted its best quarterly profit since 2015, helped by robust trading activity.

Computer peripherals maker Logitech International slumped more than 4% after it warned of supply-chain disruptions.

Eurozone banks plan to tighten their conditions for housing loans further in the fourth quarter, the Bank Lending Survey from the European Central Bank showed on Tuesday.

In the fourth quarter, banks plan to tighten credit standards for loans to firms and to ease criteria slightly for consumer credit.

UK retailers expect sales to be above seasonal norms in November, the Distributive Trades Survey results from the Confederation of British Industry revealed.

The retail sales balance rose to 30% in October from 11% in September. A net 35% forecast sales to increase further next month.

A net 48% of retailers reported order growth in October versus 20% in September. However, a net 41% expects orders to ease slightly next month.

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