Major European Markets Close Slightly Higher

(RTTNews) - The major European markets closed slightly higher on Thursday with investors reacting positively to some quarterly earnings updates from a few major European and U.S. companies, and dovish comments from Bank of England Governor Andrew Bailey.

Data showing weak private sector activity in the Eurozone and the U.K. weighed a bit and limited markets' upside. Eurozone private sector activity shrank moderately in October on continuing contraction in manufacturing, flash survey data from S&P Global showed.

The BoE Governor said that U.K. inflation is fading more rapidly than central bankers expected, boosting bets on another rate cut on Nov. 7.

"Disinflation is happening I think faster than we expected it to, but we have still genuine question marks about whether there have been some structural changes in the economy," he was quoted as saying at an event organized by the Institute of International Finance in Washington DC.

Separately, Reuters reported citing sources that ECB policymakers are debating whether rates have to go below neutral to stimulate the economy.

The pan European Stoxx 600 edged up 0.03%. The U.K.'s FTSE 100 and France's CAC 40 crept up 0.13% and 0.08%, respectively. Germany's DAX climbed 0.34%, while Switzerland's SMI closed higher by 0.21%.

Among other markets in Europe, Iceland, Netherlands, Norway and Turkiye closed higher.

Austria, Belgium, Denmark, Finland, Greece, Poland, Portugal, Russia, Spain and Sweden ended weak, while Ireland settled flat.

In the UK market, Barclays rallied about 4.2% after third-quarter profit beat expectations. Barclays reported a net profit of £1.6 billion for the third quarter, surpassing the £1.17 billion forecast and up 23% year-on-year. Its revenue of £6.5 billion also exceeded expectations,

Anglo American Plc shares gained nearly 3% after the company raised platinum and nickel production guidance.

Unilever closed up 3% as it reported slightly better-than-expected underlying quarterly sales.

London Stock Exchange Group, Standard Chartered, Natwest Group, ICG, Entain, RightMove, Scottish Mortgage, Melrose Industries, WPP, Auto Trader Group, BT Group and Fresnillo gained 1 to 3%.

Schrodders, SSE and Endeavour Mining lost 2.1 to 2.7%. United Utilities, Severn Trent, Reckitt Benckiser, B&M European Value Retail, Croda International, IHG, BAE Systems, Bunzl, Berkeley Group Holdings, Persimmon, Hikma Pharmaceuticals, Rolls-Royce Holdings, Next and AstraZeneca Pharma closed down 1 to 2%.

In the German market, Puma, Porsche, Rheinmetall, Volkswagen, Siemens Energy and Deutsche Post gained 2 to 3.4%. Beiersdorf gained about 3% after reporting an increase in group sales for the first nine months of 2024.

Vonovia, Mercedes-Benz, MTU Aero Engines, Deutsche Telekom, Deutsche Boerse, Fresenius Medical Care, BMW, Daimler Truck Holding, Continental, Fresenius and Infineon gained 1 to 2%.

Symrise ended down 3%, after the fragrance, flavor and nutrition group posted Q3 sales in the reporting currency slightly below estimates.

Deutsche Bank closed lower by 2.4%. Merck and Sartorius also declined sharply.

In the French market, Renault rallied nearly 5% as the carmaker reported an unexpected rise in quarterly revenues. Danone gained about 2.75% after Q3 organic revenue growth exceeded market expectations.

LVMH gained about 2.5%. Hermes International moved higher after it reported an 11.3% rise in third-quarter sales. Kering gained in strength after reporting higher third-quarter sales.

Stellantis, Orange, Publicis Groupe, Thales and Bouygues also closed notably higher.

Edenred plunged more than 14%. Michelin lost about 8% after cutting its annual sales volume forecast.

Dassault Systemes, Carrefour and Veolia closed lower by 1.7 to 2.4%. Sanofi ended down by about 1%.

On the economic front, Eurozone private sector activity shrank moderately in October on continuing contraction in manufacturing, flash survey data from S&P Global showed. The HCOB flash composite output index rose slightly to 49.7 in October from 49.6 a month ago. The reading was seen at 49.8. Business activity in the currency bloc dropped marginally for the second straight month.

The UK private sector activity expanded at the weakest pace in almost a year in October due to weak demand conditions amid heightened economic uncertainty. The flash composite output index dropped to 51.7 in October from 52.6 in September. Nonetheless, a reading above 50.0 suggests expansion in the private sector. The score was expected to remain stable at 52.6.

France's manufacturing confidence weakened sharply in October, survey data from the statistical office INSEE showed. The business climate index fell to 92 in October from 99 in September. The score deviated sharply from its long-term average of 100. Moreover, excluding the COVID-19 pandemic period, this was the biggest monthly fall since November 2008.

France's private sector shrank again in October as both manufacturers and service providers reported lower output, survey data from S&P Global showed on Thursday. The flash composite output index unexpectedly fell to a nine-month low of 47.3 in October from 48.6 in the previous month. This was the lowest score since the start of this year. The expected level was 49.0.

Germany's private sector downturn slowed marginally in October as output dropped at a slightly slower pace and business expectations picked up, the latest HCOB Purchasing Managers' survey compiled by S&P Global showed Thursday. The flash composite output index rose to 48.4 in October from September's seven-month low of 47.5. The score was also above forecast of 47.6.