European Shares Rises as ECB Retains Key Interest Rates
By Investors Hub
European stocks remain mostly positive after the European Central Bank left its key interest rates, forward guidance, and stimulus measures unchanged as expected in the final policy session chaired by President Mario Draghi.
While the French CAC 40 Index has risen by 0.4 percent, the German DAX Index is up by 0.6 percent and the U.K.?s FTSE 100 Index is up by 0.9 percent, benefiting from the pound’s latest weakness ahead of the European Union’s decision on whether to grant Britain a Brexit extension.
Semiconductor company STMicroelectronics NV has moved sharply higher after its third quarter revenue topped forecasts.
German automaker Daimler has also soared after stronger sales of luxury cars and higher profits in its van business helped shore up its third quarter profits.
British drug major AstraZeneca has also rallied as it continued its strong sales performance in the third quarter.
Dialog Semiconductor has also advanced. The chip designer said it expects to report higher than anticipated revenue and profitability for the third quarter.
On the other hand, Nokia shares have plunged after the Finnish mobile networking firm slashed its 2019 and 2020 profit outlook.
Technology company Aixtron has also slumped after its nine-month net result came in at 20.2 million euros compared to 27.7 million euros last year.
Sportswear group Puma has also dropped after warning that it would take a hit from U.S. tariffs on China in the fourth quarter.
In economic news, the euro area private sector remained close to stagnation in October as manufacturing continued to shrink amid a subdued expansion in service activity, survey data from IHS Markit showed.
The flash composite output index rose slightly to 50.2 in October from 50.1 in September. The score was forecast to improve to 50.3.
The survey showed a further decline in manufacturing output was accompanied by one of the weakest service sector expansions since 2014.