Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European stocks rise past two-week highs on earnings optimism

Stock MarketsOct 14, 2021 12:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 12, 2021. REUTERS/Staff

By Sruthi Shankar and Susan Mathew

(Reuters) - European stocks rose on Thursday, hitting the highest in more than two weeks as investors bet a steady economic recovery from the pandemic-induced slump will support corporate earnings despite signs of elevated inflation.

Mining shares jumped 3.3%, their biggest daily gain in three months, technology stocks rallied again and the pan-European STOXX 600 index rose 1.2%.

European chipmakers, including ASML, Infineon (OTC:IFNNY) and BE Semiconductor, were among the top gainers in the tech sector after Taiwan chip giant TSMC posted a 13.8% jump in third-quarter profit due to booming demand for semiconductors.

China's factory gate inflation rose in September to a record high on soaring commodity prices. Many still hope inflation will be transitory, but supply chain disruptions, a global energy crisis and labour shortages have fuelled concerns that central banks could raise interest rates sooner, accelerating plans for a gradual exit from the pandemic-era stimulus.

"Equity markets appear to have shaken off their caution of recent weeks," said Chris Beauchamp, chief market analyst at IG. Upbeat results from Wall Street banks, big European names such as LVMH and SAP, as well as TSMC reinforced the view of a global economy still moving in the right direction, albeit at a slower place, he said.

"Having dropped back in an orderly fashion into earnings season, it seems stock markets have now reached a level at which investors are once again happy about buying the dip..."

Optimism around the earnings has seen the STOXX 600 narrow the gap to its all-time highs to 2%.

Analysts expect third-quarter profit for STOXX 600 companies to climb 46.7% from a year ago, according to Refinitiv IBES data, with energy companies enjoying the biggest revisions.

Among individual stocks, French advertising group Publicis gained 2.7% after it raised its outlook for 2021 as a global shift towards digital media and e-commence helped third-quarter organic growth exceed market expectations. British rival WPP (LON:WPP) rose 0.5%.

Danish food ingredients maker Chr Hansen dropped 6.7% after fourth-quarter profit cam in below estimates.

SAP gained 2.9%, the biggest boost to the tech sector, after the German software firm's shares jumped nearly 4% in the previous session following a strong quarterly report.

The biggest drag on the STOXX 600 was AstraZeneca (NASDAQ:AZN), down 0.5%. Europe's drug regulator said it had started a real-time review of the drugmaker's antibody-based COVID-19 therapy.

Graphic: STOXX 600 and some select sub-indices https://fingfx.thomsonreuters.com/gfx/mkt/mopanjloeva/STOXX%20600%20and%20select%20sub-indices.png

European stocks rise past two-week highs on earnings optimism
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Steffen vdm
Steffen vdm Oct 14, 2021 4:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And in the meantime inflation in many European countries are growing at fastest pace in 13 years...
Steffen vdm
Steffen vdm Oct 14, 2021 4:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Free money from governments for big tech, raising inflation, giving big tech a great excuse to overcharge us for their products, forcing people to borrow money at rising (inevitably) rates. This all makes the rich richer and the poor poorer
Jurgen Daub
Jurgen Daub Oct 14, 2021 4:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
finally a theory i can agree with
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email