Frankfurt, Nov 4. (dpa-AFX/GNA) – European stocks moved up sharply on Wednesday and several markets hit multi-week or even multi-month highs as some stronger-than-expected corporate earnings, weak oil prices and softening bond yields lifted sentiment.
The decisive victory of the Democrats in the US midterm elections also contributed significantly to the bullish mood in the markets.
Following their fine show in the midterm elections, Democrats are projected to win control of both the House and Senate.
President Donald Trump’s apparent willingness to accept the results and work with Democrats to address political issues also helped ease concerns about increased regulatory scrutiny under a Democrat-controlled Congress.
Brent crude front-month futures plunged to about $95 a barrel, losing about 8 per cent.
The pan European Stoxx 600 climbed 1.86 per cent. The UK’s FTSE 100 gained 1.72 per cent, Germany’s DAX ended 1.37 per cent up, and France’s CAC 40 settled with a gain of 2.19 per cent. Switzerland’s SMI ended stronger by 1.9 per cent.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Italy, Netherlands, Poland, Portugal, Spain, Sweden and Turkey closed on strong note.
Iceland moved modestly higher, while Norway and Russia ended flat.
In the UK market, Miners and banks were among the prominent gainers.
Fresnillo, Smith & Nephew, Associated British Foods, AutoTrader Group, Natwest, Endeavour Mining, St. James’s Place and Airtel Africa climbed 5 per cent – 7 per cent.
Lion Finance, which has a London headquarters but whose corporate headquarters are in Tbilisi, Georgia, gained nearly 5 per cent.
The company’s bottom line came in at 661.88 million Georgian Lari (GEL) or $254.6 million, or GEL15.42 per share. This compares with GEL547.19 million, or GEL12.58 per share, last year. The company’s revenue for the period rose 22.6 per cent to GEL1.145 billion from GEL934.15 million last year.
Marks & Spencer rallied nearly 7 per cent. The retailer reported a sharp rise in half-year profit despite the “onslaught of cost headwinds” facing the industry.
Burberry Group, HSBC Holdings, Convatec Group, Lloyds Banking Group, Next, Coca-Cola, Relx, IAG, BT, Barclays, Kingfisher, Standard Chartered, ICG, Informa, Sainsbury (J), Games Workshop, Pershing Square Holdings and GSK also moved up sharply.
Weir tanked nearly 10 per cent despite reporting a year-over-year increase of 8 per cent in third quarter group orders.
Ithaca Energy fell 7.7 per cent. BP and Shell ended lower by about 2.7 per cent and 1.6 per cent, respectively.
Computacenter drifted lower by 5.1 per cent. BAE Systems, BP, Diploma, Spirax Group, Halma, Smiths and IMI also ended notably lower.
In the German market, Heidelberg Materials soared nearly 10 per cent after reporting stronger-than-expected third quarter earnings and raised its full-year outlook. The company increased its revenue by 10 per cent to €6.41 billion ($7.19 billion) in the third quarter.
Heidelberg Materials continues to expect the result from current operations to be between €3.40 billion and €3.65 billion.
Scout24 gained nearly 8 per cent. The company’s revenue for the third quarter increased 19.7 per cent to EUR198.2 million from EUR165.6 million last year.
Continental surged 5.6 per cent. The car parts supplier raised its profitability outlook for 2026. For the three-month period to September 30, the Group posted a net profit of €349 million, or €1.75 per share, compared with a net loss of €756 million, or €3.78 per share in the same period last year.
Zalando closed higher by a little over 8 per cent. Deutsche Bank rallied 6.5 per cent. Fresenius, Fresenius Medical Care, BMW, Mercedes-Benz, Commerzbank, Adidas, Allianz and Bayer gained 4 per cent – 6 per cent.
SAP, Volkswagen, Deutsche Telekom, Siemens Healthineers, Beiersdorf, Deutsche Post, Porsche Automobil Holding, Sumrise, Munich RE, MTU Aero Engines, Hannover RE, BASF and Siemens moved up 2 per cent – 4 per cent.
Siemens Energy fell more than 7 per cent. Hochtief shed 4.7 per cent and Infineon drifted lower by 3.3 per cent.
In the French market, Kering surged 6.5 per cent. Hermes International, Renault, AXA, BNP Paribas, Societe Generale, LVMH, Capgemini, Engie, Publicis Groupe, Dassault Systemes, Airbus, Sanofi, Edenred, Credit Agricole, Orange, Accor, L’Oreal, Saint-Gobain, Carrefour, Air Liquide, Pernod Ricard, Vinci and Michelin gained 3 per cent – 5 per cent.
STMicroelectronics dropped more than 6 per cent. Legrand shed 4.1 per cent and Schneider Electric ended lower by 3.4 per cent. Thales ended 2.1 per cent down, and TotalEnergies closed with a loss of 1.25 per cent.
In economic news, the S&P Global UK Composite PMI edged up to 52.9 in October, from 52 in September, slightly below the flash estimate of 53.1 but marking its highest level since February.
The S&P Global UK Services PMI rose to 52.8 in October, up from 52.1 in September, although below the preliminary estimate of 53.1. Nevertheless, the latest reading signalled the fastest expansion in services activity since February, supported by improving customer demand and stronger order books.
Data from S&P Global showed the S&P Global France Composite PMI for October was revised sharply down to 46.6 from the flash estimate of 48.4, falling below September’s 51.1.
The S&P Global France Services PMI fell to 46.2 in October, revising lower from the preliminary estimate of 48.4 and slipping from 51.2 in the previous month. This marked the steepest contraction since May.
GNA