European Stocks Appreciate in Midweek Session

By Investors Hub

European stocks have moved sharply higher on Wednesday, as positive cues from Wall Street and Asia as well as a slew of upbeat earnings news helped outweigh signs of a further loss of momentum in China.

While the French CAC 40 Index has surged up by 2.3 percent, the U.K.?s FTSE 100 Index and the German DAX Index are up by 1.6 percent and 1.5 percent, respectively.

French cosmetics and beauty products giant L’Oreal has soared after its sales for the first nine months of the year rose 1.8 percent.

Air France-KLM has also advanced after its net income for the third quarter increased 22.6 percent from last year.

Drug giant Sanofi has also jumped as the company raised its 2018 profit target for the second time this year after its third quarter earnings topped forecasts.

Banco Santander has also moved notably higher. The bank’s attributable profit for the third quarter was 36 percent higher than a year ago, helped by solid performances in Brazil and Spain.

Packaging company Smurfit Kappa Group has rallied as it reported 27 percent growth in pre-exceptional EBITDA growth for the 9 months ending September 30th.

Standard Chartered has also soared. After posting better than expected third quarter earnings, the bank warned about the impact of the U.S.-China trade war on business sentiment in its core emerging markets.

Specialty chemicals company Clariant has also rallied after reporting a rise in nine-month EBITDA and confirming its full-year outlook.

ThyssenKrupp has also jumped in Frankfurt despite the European Commission launching an in-depth probe into its planned steel joint venture with India’s Tata Steel.

On the other hand, French satellite firm Eutelsat has moved sharply lower after cutting its revenue guidance. Finnish tire maker Nokian has also slumped after cutting its full-year profit outlook.

In economic news, German retail sales fell 2.6 percent from a year ago in September, while economists were looking for a 1 percent gain.

U.K. shop prices declined in October following two months of mild inflation, data from the British Retail Consortium showed. The BRC – Nielsen shop price index decreased 0.2 percent year-on-year versus a 0.2 percent rise in September.

Separately, U.K. consumer confidence weakened in October, market research firm GfK said. The consumer sentiment index dropped to -10 from -9 in September, as consumers were more concerned about economic situation over the coming twelve months. The reading came in line with expectations.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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