Upbeat earnings boost European shares
Publish Date : 2019/10/09 - 09:55

Upbeat companies’ earnings boosted European stocks on Wednesday after a 1% drop in the previous session, but sentiments are damped due to the U.S. and China trade talks and uncertainties about Britain’s exit from EU.

Companies with strong earnings reports were leading gains on the STOXX 600 index. British bookmaker GVC rose 3.9%. The STOXX 600 index was up 0.3% after a sluggish start to the session.

Dutch online food delivery company Takeaway gained 0.4%, as it reported an 87% increase in third-quarter orders.

All major country indexes were higher, with Frankfurt shares leading gains.

“Markets appear to be making the calculation that even if no (Brexit) deal is agreed by the end of the week or the month, an extension will happen, and a no-deal Brexit avoided, at least in the short term,” CMC Markets analyst said.

The deeply uncertain future for Brexit, coupled with mounting concerns around a damaging Sino-U.S. trade war to economy, has knocked about 3% off the benchmark index in October, erasing all its September gains.

Washington’s plan to impose visa restrictions on Chinese officials late on Tuesday and the addition of more Chinese companies to a U.S. trade blacklist, making investors skeptical of a resolution to the trade war.

Source: reuters

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