(RTTNews) – European stocks closed higher on Thursday, extending gains from the previous session with optimism about strong earnings outweighing concerns about inflation and weakening Federal Reserve policy .
The minutes of the last Federal Reserve policy meeting confirmed that the central bank could begin a gradual reduction in its asset purchases as early as November.
Firm oil and copper prices pushed up energy and materials stocks.
The pan-European Stoxx 600 climbed 1.2%. The UK FTSE 100 gained 0.92%, the German DAX jumped 1.4% and the French CAC 40 jumped 1.33%, while the Swiss SMI gained 0.66%.
Among other European markets, Austria, Belgium, Finland, Greece, Iceland, Ireland, the Netherlands, Norway, Poland, Portugal, Russia, Spain and Sweden closed with net to moderate gains.
The Czech Republic, Denmark and Turkey finished weak.
In the UK market, BHP Group, Rio Tinto, Anglo American Plc, Glencore, IAG, Intermediate Capital Group and Antofagasta gained 3-4%.
Burberry Group, Whitbread, Polymetal International, Next, Ashtead Group, Segro, Smith (DS), Johnson Matthey, Halma, Smith & Nephew, Experian, Scottish Mortgage and Pershing Square Holdings also rebounded strongly.
Tesco and Admiral Group both ended down around 1.25%.
On the French market, ArcelorMittal, Kering, Schneider Electric, Cap Gemini, Teleperformance, Legrand, Saint Gobain, LOreal and LVMH gained 2 to 3%.
Publicis Group stock rose more than 2.5% after the company raised its outlook for 2021 after posting organic growth of 11.2% for the third quarter, with double-digit growth in all regions.
In Germany, Siemens gained more than 3%. SAP, Infineon Technologies, Hello Fresh, Linde, Fresenius and Daimler climbed from 2% to 2.8%. Zalando, Adidas, Vonovia, Bayer, Puma, Volkswagen and Siemens Healthineers also posted strong gains.
Sartorius shared a drop of more than 3%. Covestro, RWE and E.ON closed moderately lower.
Semiconductor company ASML rose nearly 4% and BE Semiconductor rose 3.7% after Taiwanese chip giant TSMC’s quarterly profits beat expectations.
Dutch digital navigation and mapping company TomTom climbed more than 4%, reversing initial losses after reporting supply chain issues.
In economic news, the main German economic institutes have improved their economic growth projections for 2022, but lowered their projections for the current year by citing bottlenecks in the manufacturing sector.
According to the economic forecast for autumn 2021, jointly prepared by Ifo in Munich, RWI in Essen, DIW in Berlin, IfW in Kiel and IWH in Halle, gross domestic product will increase by 2.4 % this year instead of 3.7% estimated in April. .
The projection for 2022 has been revised to 4.8% from 3.9%. For 2023, growth is 1.9%.
UK household demand for secured loans is expected to decline further in the fourth quarter, the Bank of England’s credit survey showed Thursday.
Lenders said demand for secured home purchase loans declined in the third quarter and is expected to decline further in the fourth quarter.
Data from the Federal Statistical Office showed that Switzerland’s producer and import prices rose in September, increasing 4.5% year-on-year. The producer price index rose 2.9% per year in September and import prices accelerated 8.1%.
On a monthly basis, producer and import prices increased 0.2% in September.
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