Europe midday: Stoxx extends gains on upbeat earnings; Burberry soars
By Frank Prenesti
Date: Thursday 14 Nov 2024
(Sharecast News) - European markets rallied on Thursday as investors digested US inflation data and a raft of upbeat corporate earnings.
The pan-European Stoxx 600 was up 0.77% at 503, with all major bourses in positive territory.
In economic news, employment in the eurozone rose slightly more than expected in the third quarter, while the economy's growth rate was 0.4%, according to official flash estimates published on Thursday.
Employment in the eurozone grew by 0.2% quarter on quarter, with an annual growth rate of 1% from 0.9% three months earlier.
Meanwhile, in a separate release from the official stats agency Eurostat, eurozone industrial production fell more than expected in September.
Industrial production fell 2% compared to the previous month and more than a 1.4% decline predicted by economists.
The previous month's 1.8% growth figure was revised down to 1.5%.
In the US CPI came in as expected, according to official data published on Wednesday, but core inflation, which strips out volatile food and energy prices, rose by 0.3% for the third month in a row, leaving the annual rate at 3.3%.
"With post-election clarity and seasonal optimism fuelling markets, investors are looking to Federal Reserve Chair Powell to don his best Santa outfit and deliver a rate cut next month, with markets giving odds of a cut at around 83%," said Hargreaves Lansdown analyst Matt Britzman.
On the equities front, shares in Burberry surged 17% as the UK luxury brand unveiled an "urgent" turnaround plan to staunch declining sales across the world.
ASML gained after the chipmaker said it expected sales to grow by 8%-14% over the coming five years,
Banca Monte dei Paschi di Siena also soared after the Italian government cut its shareholding in the lender by 15%, raising €1.1bn. Peers Banco BPM and Anima Holding bought stakes in the world's oldest bank.
Siemens also gained strongly as the German industrial giant posted fourth quarter earnings slightly ahead of forecasts.
Poland's Allegro fell 15% as the e-commerce platform said it expected earnings growth to slow down to 4-7% at home in the fourth quarter.
Reporting by Frank Prenesti for Sharecast.com
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