European Stocks Gain as Earnings Roll In, CAC 40 Hits Record
European stocks gained, while France’s equity benchmark hit a fresh record as investors looked ahead to a flurry of earnings.
The Stoxx Europe 600 Index was up 0.2% by the close in London. Mining shares underperformed as gold and silver prices fell, while the real estate and autos sectors led gains.
The French CAC 40 Index rose 0.6% to a record 8258.86 points, breaching its previous all-time high of May 2024 as strong corporate results offset concerns about the country’s political turmoil and credit outlook.
In individual stocks, Eurofins Scientific SE dropped as much as 10% before paring most losses after third-quarter results showed continued softness in the French firm’s biopharma division. Edenred SE jumped 20%, the most on record, after the digital platform for services and payments reported better-than-anticipated revenue growth for the third quarter.
BPER Banca SpA rose 4.5% after the Italian lender signed derivative contracts for a synthetic exposure to its own shares equal to 9.99% of its share capital. Segro Plc gained 2.9% as the property investment company said occupier sentiment has improved.
European earnings kicked off with some of the region’s largest companies, including luxury goods firms LVMH and Kering SA, reporting solid results.
Markets were driven by fresh signs of easing in US-China trade tensions, said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg. “Now, there must follow some concrete actions for markets to spur a relief rally,” he said.
Meanwhile, Morgan Stanley strategists see a mixed start to the earnings season in Europe and expect lower earnings growth forecasts for next year.
Source : Bloomberg.com
