Reuters | Nov 08, 2019 01:15
* STOXX 600 is now 2% away from record high
* BoE surprises as two members vote for rate cut
* Siemens hits more than 1-yr high on upbeat results
* Lufthansa jumps after unveiling cost-cutting plan
* Hiscox tumbles after brokerage downgrade
By Susan Mathew
Nov 7 (Reuters) - European shares rose for a fifth straight
session on Thursday to hit fresh four year highs as investors
cheered signs of progress in U.S.-China trade talks and largely
positive earnings reports from a host of companies.
Shares of Siemens SIEGn.DE hit their highest in more than
a year after the German industrial company beat fourth-quarter
profit expectations, while Italy's biggest bank UniCredit
CRDI.MI rose 6% after announcing its first share buyback in
more than a decade after solid third-quarter earnings.
Lufthansa LHAG.DE jumped 6.8% on plans to cut costs at
some of its units to revive profit. The German airline's shares
helped boost the wider travel and leisure index .SXTP by 1.3%,
making it one of the top gainers among the major European
sub-sectors. On the trade front, China's commerce ministry said the
world's two economic giants were working on a deal that would
roll back trade tariffs in different stages. "There are still hurdles to be overcome but it is
encouraging that, contrary to last spring, Chinese negotiators
are sending more positive signals, as well their U.S.
counterparts," said Raoul Leering, head of international trade
analysis at ING.
The news sparked a broad-based rally in Europe, while Wall
Street was pushed to a record high. Trade-sensitive Frankfurt
shares .GDAXI rose 0.8% to close at their highest level since
February 2018. .N
It also helped investors shrug off another weak data point
from Germany showing industrial output fell more than expected
in September. London's FTSE 100 .FTSE rose 0.1% as the pound GBP=
weakened after two Bank of England officials voted to lower
interest rates on Thursday, contrary to expectations of a
unanimous decision to hold rates. .L
"That suggests that the Bank is very unlikely to follow
through with its signalled rate hikes (if Brexit goes smoothly)
any time soon," ING's developed markets economist James Smith
But a 9.7% tumble in insurer Hiscox HSX.L on brokerage
downgrades and a 2.7% slip in London Stock Exchange Group
LSE.L after it said it would consult with members regarding a
shorter trading day, saw the FTSE post the smallest gains among
regional peers. The FTSE midcap index .FTMC and Irish stocks .ISEQ
gained 1.1% and 1.3%,respectively.
The pan-European STOXX 600 index .STOXX closed up 0.4%. It
is now a little over 2% away from its record high hit in April
Among the top gainers across European sub-sectors were
automakers .SXAP and miners .SXPP , while defensive plays
such as telecoms .SXKP and utilities .SX6P fell, suggesting
higher risk appetite.
The world's largest steelmaker ArcelorMittal MT.AS jumped
6.7% on better-than-expected results. Shares in wind turbine
maker Vestas VWS.CO rose 11% to the top of the STOXX 600 after
it reported forecast-beating quarterly operating profit.
French gas and power group Engie ENGIE.PA posted its
worst day in more than eight months on less optimistic guidance,
taking the utility sector .SX6P down 1.9% for its worst day in
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.