- STOXX 600 in progress for weekly earnings
- Stocks of chips boosted by TSMC’s results
- Publicis on the rise
October 14 (Reuters) – European stocks rose on Thursday, hitting their highest level in more than two weeks as investors bet a steady economic recovery from the pandemic-induced crisis will support corporate earnings despite signs of sagging. high inflation.
Mining stocks jumped 3.3% (.SXPP) their biggest daily gain in three months, tech stocks (.SX8P) rebounded again and the pan-European STOXX 600 (.STOXX) index rose 1 , 2%.
European chipmakers including ASML (ASML.AS), Infineon (IFXGn.DE) and BE Semiconductor (BESI.AS) were among the top winners in the tech sector after Taiwanese chip giant TSMC (2330.TW ) posted a 13.8% jump in third-quarter profit due to surging demand for semiconductors. Read more
Inflation at Chinese factories hit a record high in September due to soaring commodity prices. Read more Many still hope inflation will be transient, but supply chain disruptions, a global energy crisis and labor shortages have fueled concerns that central banks could raise interest rates. ‘interest earlier, accelerating plans for a gradual exit from the relaunch of the pandemic era.
“The stock markets appear to have shaken off their cautiousness in recent weeks,” said Chris Beauchamp, chief market analyst at IG. The positive results from Wall Street banks, big European names such as LVMH and SAP, as well as TSMC have reinforced the vision of a global economy still moving in the right direction, albeit at a slower pace, he said. -he declares.
“After declining in an orderly fashion in the earnings season, it appears that the stock markets have now reached a level where investors are again happy to buy the downside …”
Optimism around earnings saw the STOXX 600 narrow the spread to all-time highs of 2%.
Analysts expect third-quarter profit for STOXX 600 companies to rise 46.7% from a year ago, according to data from Refinitiv IBES, with energy companies enjoying the largest revisions.
Among individual stocks, French advertising group Publicis (PUBP.PA) gained 2.7% after raising its outlook for 2021 as a global shift to digital media and e-start helped the organic growth of the third quarter to exceed market expectations. British rival WPP (WPP.L) rose 0.5%. Read more
Danish food ingredient maker Chr Hansen (CHRH.CO) fell 6.7% after fourth quarter profits fell below estimates.
SAP (SAPG.DE) gained 2.9%, the biggest boost to the tech sector, after shares of the German software company jumped nearly 4% in the previous session as a result of a strong quarterly report.
The biggest drag on the STOXX 600 was AstraZeneca (AZN.L), down 0.5%. The European medicines regulator said it had started a real-time review of the drugmaker’s antibody-based COVID-19 therapy. Read more
Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila, Amy Caren Daniel and David Gregorio
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