European Stock Markets Rise, Performance Reports & PMIs Support
European stock markets strengthened on Friday (February 20th), as investors gained confidence thanks to a generally solid performance report season and relatively moderate interest rates. Tensions in the Middle East did little to dampen risk appetite, allowing markets to maintain a risk-on stance.
The Stoxx Europe regional index rose 0.8%. On major exchanges, Germany's DAX rose 0.8%, the UK's FTSE 100 rose 0.5%, France's CAC 40 jumped 1.2%, and the Swiss market index added 0.3%.
Data-wise, the seasonally adjusted HCOB Flash Eurozone Composite PMI Output Index rose to 51.9 in February from 51.3 in January. This figure marks the 14th consecutive month that eurozone business activity remained in expansionary territory (above 50), indicating continued, albeit moderate, private sector recovery.
In the corporate sector, HSBC reportedly cut about 10% of its US debt capital markets team as part of a cost-efficiency program under CEO Georges Elhedery. Despite the news of the cuts, HSBC shares rose about 0.5% in London.
In the healthcare sector, BioNTech sued Moderna for alleged patent infringement of its COVID-19 vaccine technology. BioNTech shares fell about 1.1% in Frankfurt. Meanwhile, AstraZeneca announced the FDA approval of Calquence (acalabrutinib) + venetoclax as a fixed-duration oral therapy for adult patients with CLL/SLL; its shares were relatively flat.
Consumer stocks were in the spotlight after reports suggested Diageo's CEO planned a top management shakeup—and the market responded positively, with Diageo shares surging nearly 4%. Meanwhile, Sanofi is facing a lawsuit from the Texas Attorney General regarding alleged improper incentives for drug prescriptions; Sanofi denies the allegations and says its program is legal—its shares fell about 0.5% in Paris.
Source: Newsmaker.id
