European Shares Rise Amid Mixed Earnings, Data
European stocks traded mostly higher on Wednesday as investors reacted to mixed earnings and regional data.
Underlying sentiment was supported somewhat after reports suggested that the Bank of England would extend its support for the beleaguered gilt market.
The pan European Stoxx 600 rose 0.2 percent to 388.86 following five consecutive sessions of losses.
The German DAX gained 0.3 percent, while France’s CAC 40 index and the U.K.’s FTSE 100 both added around 0.4 percent.
Dutch technology group Philips fell 5.3 percent after issuing a profit warning, citing continued supply chain challenges.
Credit Suisse tumbled 3.2 percent on a Bloomberg report that it is facing a U.S. tax probe.
British housebuilder Barratt Developments slumped 4.2 percent after a warning that it is preparing for tougher times ahead. Persimmon fell 2.9 percent and Bellway gave up 2.2 percent.
Recruiter Page Group added 1.5 percent after posting a jump in third-quarter gross profit.
French luxury group LVMH rallied 3 percent after posting a brisk rise in sales in the third quarter, driven by strong local demand and returning foreign visitors in Europe, the U.S. and Japan.
German drugs-packaging maker Gerresheimer gained 2.5 percent after reporting double digit growth in earnings and revenue for the third quarter.
Klöckner, which is engaged in the production and distribution of steel and metal products, plunged 8.8 percent after reporting lower than expected operating income in the third quarter of 2022.
In economic releases, Eurostat data showed that Eurozone industrial output rose strongly in August.
Output from factories, mines and utilities rose 1.5 percent in August month-on-month, while economists had expected a 0.5 percent increase.
Year-on-year, industrial production increased 2.5 percent in the month.
Investors shrugged off separate data showing that the U.K. economy contracted unexpectedly in August on weak services and industrial production.
GDP shrank 0.3 percent month-on-month, in contrast to the revised 0.1 percent growth in July. GDP was forecast to remain flat after July’s initially estimated growth of 0.2 percent.
On a yearly basis, GDP expanded at a slower pace of 2.0 percent after climbing revised 3.1 percent in July. This was also slower than economists’ forecast of 2.4 percent.
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