Europe close: Shares end higher despite mixed corporate updates
By Alexander Bueso
Date: Wednesday 20 Oct 2021
(Sharecast News) - European shares finished higher on Wednesday even as investors digested a mixed bag of corporate earnings news.
The pan-European Stoxx 600 index was up 0.32% to 470.07, alongside a 0.94% gain out on Milan's FTSE Mib to 26,581.77 while Spain's Ibex 35 edged up 0.24% to 9,017.9.
UK shares were roughly flat as inflation fell unexpectedly in September, and traders were still factoring in an early rise in interest rates next month.
September inflation fell back to 3.1% from 3.2% in August September despite the rising cost of fuel and transport, according to official data and still well above the Bank of England's target of 2%.
"The latest numbers don't include the petrol pump crisis or the most recent surge in energy prices, or indeed the knock on effects across the economy, so inflation will still get worse before it gets better," said AJ Bell analyst Laith Khalaf.
In equity news French luxury goods maker Kering fell as sales growth at its fashion brand Gucci missed analysts' expectations due to a sharp slowdown in the pace of its post-Covid recovery, particularly in Asia.
Shares in its French rival LVMH and Hermes on the other hand were able to shake off early selling after the news.
ASML Holdings, which supplies computer chip, fell despite posting slightly better-than-expected quarterly results.
Dutch paints and coatings maker Akzo Nobel fell 1.27% as quarterly earnings were hit by continued raw material inflation and supply chain disruptions, which it expects to continue through mid-2022.
Shares in Sweden's Husqvarna Group topped the Stoxx as the maker chainsaws, mowers and tractors reported a rise in third quarter sales.
Swiss food giant Nestle gained 2.7% after the company lifted its sales outlook after strong coffee sales and price hikes pushed organic sales 6.5% higher in the third quarter.
Roche shares fell, despite the Swiss drugmaker posting an 8% rise in nine-month revenues, powered by demand for Covid-19 tests, and lifted guidance.
Deliveroo shares rose as the online food delivery firm reported a 58% rise in order values for the third quarter.
Miners were weaker as metals prices fell, with Antofagasta, Rio Tinto, BHP, Anglo American and Glencore all lower.
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