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

Tech, earnings lift European stocks as Biden inches closer to victory

Stock MarketsNov 05, 2020 05:20AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

By Sruthi Shankar

(Reuters) - European shares hit a two-week high on Thursday, supported by a handful of strong earnings reports, more stimulus for Britain's economy and a surge in Wall Street stock futures, as Democrat Joe Biden moved closer to victory in the U.S. presidential race.

In its fifth day of gains, the pan-European STOXX 600 index (STOXX) rose 0.6% to hit its highest level since Oct. 20, with technology stocks (SX8P) once again leading the way.

Dialog Semiconductor (DE:DLGS) jumped 7.2% after it reported third-quarter revenue at the higher end of its previously forecast range.

French lender Societe Generale (PA:SOGN) gained 2.8% after it swung back to a quarterly profit as its equity trading business continued to recover from a weak start to the year.

Meanwhile, U.S. futures jumped over 1%, as Biden held narrow leads in Nevada and Arizona, while Republican President Donald Trump was watching his slim advantage fade in must-win states Pennsylvania and Georgia as mail-in and absentee votes were being counted.

Tech stocks looked set to outperform, as the likelihood of a gridlock in U.S. Congress made investors optimistic that tighter regulation and higher corporate taxes on American firms might be hard to enact. [MKTS/GLOB]

Chris Bailey, European strategist at Raymond James in London, said it was a combination of the election and COVID-19 trade coming together.

"The election trade is that there isn't a 'blue sweep'. Those conditions where you would've perhaps favoured reflation - rising bond yields which would've supported value stocks - switched away a bit," Bailey said.

"We're now back to favouring COVID-19 trade, which is obviously beneficiaries of work-from-home and lower bond yields."

Defensive utilities (SX6P) rose 1.4%, but banks (SX7P) fell 1.0%, coming under pressure after Dutch bank ING Groep NV (AS:INGA) fell 7.1% on reporting lower-than-expected pre-tax profit.

Germany's Commerzbank (DE:CBKG) dropped 6.5% after it reported quarterly loss, as the lender undergoes a restructuring and deals with fallout from the coronavirus crisis.

Munich-based broadcaster ProSiebenSat.1 Media (DE:PSMGn) jumped 10.3% after it reinstated its outlook for the full year and returned to profit in the third quarter.

UK's FTSE (FTSE) was flat, with sterling on the rise after the Bank of England increased its already huge bond-buying stimulus by a bigger-than-expected 150 billion pounds ($195 billion). (L)

Tech, earnings lift European stocks as Biden inches closer to victory
 

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.
 
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