European stocks rise after earnings reports
The pan-European STOXX 600 rose 0.1% to 572.28 points
European stocks nudged higher on Monday as investors digested a new round of earnings reports, while auto shares gained on optimism that Dutch chipmaker Nexperia’s China plants will resume shipments.
The pan-European STOXX 600 rose 0.1% to 572.28 points. Other regional indexes were mixed, with Germany’s DAX up 0.7% and France’s CAC 40 down 0.1%.
Auto stocks advanced with Renault, Mercedes Benz and Volkswagen gaining between 1.9% and 2.3%.
Against this backdrop, the broader auto sector had logged its second straight month of declines in October.
After what it seems to have been an unrelenting string of bad news from European carmakers, this gives them a bit of a shot in the arm. It’s not a turnaround, but it’s certainly a bit more support that we’re looking for, said Chris Beauchamp, chief market analyst at IG Markets.
The Dutch government recently seized control of Nexperia, owned by Chinese company Wingtech, which prompted Beijing to block Nexperia products from leaving China, creating supply disruptions for automakers globally.
European tech stocks gained 0.6%. Travel and leisure stocks added 1.7%, boosted by Ryanair’s shares.
Mining stocks dropped 1.5% with Anglo American and Rio Tinto down over 2% each.
Among corporate updates, shares in Siemens Energy hit a record high and were last up 2.5% after Morgan Stanley raised its target price over an improved mid-term outlook.
GTT shares hit a record high too and were last up 8.7% after the French LNG containment system specialist raised its annual revenue and core earnings forecast.
Ryanair raised the prospect of more than recovering last year’s 7% fare decline. Shares of the low-cost airline rose 3.9%.
Campari slipped 2.4% after Italian tax police seized shares worth €1.29 billion ($1.5 billion) from a Luxembourg-based holding company that controls the Italian drinks group, citing alleged tax evasion.
Companies in Europe that are exposed to the export markets are doing better than expected this earnings season, said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank. That’s giving a boost, especially when you’re looking at the German markets, and comes as a relief for European investors.