Europe close: DAX, CAC 40 reach new record highs
By Josh White
Date: Tuesday 16 Nov 2021
(Sharecast News) - European shares closed in positive territory on Tuesday, after positive mood music from the US-China leaders meeting and strong corporate earnings.
The pan-European Stoxx 600 was last up 0.24% at 489.61, while Germany's DAX was 0.61% firmer and France's CAC 40 pushed 0.34% higher.
"European markets have continued to go from strength to strength today with the DAX and CAC 40 both accelerating to new record highs," said CMC Markets chief market analyst Michael Hewson.
"Markets appear to like today's first half numbers from Vodafone, which have beaten market expectations.
"The latest second quarter numbers have built on the progress made in the first half of the year, adding to the €11.1bn in revenues for the first quarter, with an improvement to €11.39bn pushing first half revenues up to €22.49bn, beating expectations of €22.1bn."
Investors cheered a three-hour meeting between US President Joe Biden and his China counterpart Xi Jinping earlier, with sentiment also helped along by ECB President Christine Lagarde's reiterating of her pushback against expectations for tighter monetary policy.
The latest data from Eurostat was also in focus, which showed the eurozone economy continued to grow in the third quarter, although at a notably slower pace than previously seen.
Seasonally-adjusted GDP rose 2.2% in the Eurozone compared with the previous quarter, when it increased 2.1%.
Year-on-year, Eurozone GDP was ahead 3.7% compared to the second-quarter's 14.2% hike, and up 3.9% across the entire EU.
Both the quarterly and annual rates were in line with consensus.
Among the 19 Eurozone countries, Germany - the bloc's biggest economy - saw GDP rise 1.8% compared to growth of 1.7% in the previous quarter.
Spain's GDP grew by 2.0% compared to 1.1% in the second quarter, while France saw GDP rise 3.0% from 1.3%.
Italy, however, was marginally down on the previous quarter, with growth easing to 2.6% from 2.7%.
Employment, meanwhile, rose 0.9% in both the Eurozone and EU in the third quarter.
The number of employed persons increased 0.7% in the Eurozone in the second quarter, and by 0.8% across the wider bloc.
Year-on-year, employment accelerated 2.0%, ahead of analyst forecasts for 1.6%, from an upwardly revised 1.9% in the second quarter.
In equity news, telecom giant Vodafone gained 4.82% after strong quarterly results while Diageo ticked higher after raising its medium-term sales growth guidance, driven by market share across its operating regions.
Shares in Dutch tech investor Prosus rose 4.2% after the company forecast higher profit for the first half of 2022 as it gained proceeds to the tune of $12.3bn from selling part of its stake in Tencent.
Portugal's Jerónimo Martins, meanwhile, slid 1.78% after the Pingo Doce supermarket chain's second largest shareholder Asteck sold its entire 5% stake in the company.
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