Europe close: Stoxx 600 snaps four-day losing streak
By Benjamin Chiou
Date: Thursday 21 Nov 2024
(Sharecast News) - A late-afternoon rally saw European stocks snap a four-day losing streak on Thursday on the back of decent gains in London and Frankfurt, with bargain-hunters stepping in as markets hit a three-month low.
The Stoxx 600 index finished 0.4% higher at 502.54, with gains of 0.8% on the FTSE 100 and DAX 30 making up for increases of 0.2-0.3% across Paris, Milan and Madrid.
The Stoxx 600 was bouncing back after falling 1.4% over the past four sessions to settle at 500.49 on Wednesday, its lowest level since 12 August.
Oil prices were sharply higher on Thursday, with Brent rising 1.5% to $73.89 a barrel, after Ukraine said that Moscow had launched an antiballistic missile at Dnipro in response to Kyiv using foreign missiles inside Russia. If confirmed, this would be the first time that such a missile has been used during the war.
"The latest stage in the Ukraine conflict could ensure that Brent crude oil does not fall below $70 per barrel anytime soon. It also suggests that there is upside risk for the oil price if the situation escalates further," said Kathleen Brooks, research director at XTB.
In economic news, UK inflation rose past the Bank of England's 2% target in October, driven by rising energy costs, according to data from the Office for National Statistics. Consumer prices rose 2.3% annually, up from 1.7% in September and exceeding the 2.2% forecast.
Meanwhile, UK government borrowing surged to £17.4bn, up £1.6bn year on year, in the first figures published since Finance Minister Rachel Reeves's Budget last month. Economists had been expecting around £12.3bn. It is also the second highest October borrowing since monthly records started in 1993.
Market movers
Shares in JD Sports Fashion slumped 15% as the sportswear retailer said full-year profit would be at the lower end of expectations after volatile trading in October.
Safety equipment and hazard detection products group Halma jumped 6% as the company raised its interim dividend by 7% after a record first-half performance which saw sales top the £1bn mark, as it retained its guidance for the full year.
Novartis finished 1% higher after boosting its mid-term guidance on the back of upcoming drug launches and "strong" growth momentum across existing products. The Swiss pharma firm increased its forecast for compound annual growth rate to 6% in 2023 to 2028, from 5% previously.
Soitec rose 8% despite the French semiconductor materials supplier reporting a decline in first-half revenues to €338m from €401m, as the company retained its full-year guidance.
German ticketing group CTS Eventim underwhelmed with record sales and profits over the first nine months of the year with shares down nearly 8%.
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