European Markets Close Higher As Stocks Gain On Bargain Hunting

(RTTNews) - European market closed higher on Tuesday, rebounding from recent losses, as investors looked to pick up stocks at reduced prices, despite none too encouraging economic data from the region and geopolitical tensions. A drop in bond yields aided sentiment.

Investors digested a slew of earnings updates from European and U.S. companies, and looked ahead to the European Central Bank's monetary policy announcement and some crucial U.S. economic data, including the GDP report and Personal Consumption Expenditure report due later in the week.

The ECB is widely expected to keep rates unchanged on Thursday.

The pan European Stoxx 600 climbed 0.44%. The U.K.'s FTSE 100 advanced 0.2%, Germany's DAX gained 0.54% and France's CAC 40 ended higher by 0.63%, while Switzerland's SMI gained 0.43%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Poland, Portugal, Sweden and Turkiye closed higher.

Iceland and Spain ended weak, while Russia settled flat.

In the UK market, TUI, Rio Tinto, Pennon and AstraZeneca gained 3.2 to 4%. United Utilities, Severn Trent, Carnival, Centrica, Antofagasta, Mondia, SSE, Anglo American Plc, IHG, Taylor Wimpey, Melrose Industries and Scottish Mortgage gained 1.5 to 2.6%.

Experian tanked more than 10%. Barclays dropped about 6.5% lender warned of margin pressure and hinted at major cost cutting later this year.

Bunzl ended lower by 4% after revenue for the third quarter fell 4.8 percent at constant exchange rates. Natwest Group, St. James's Place and Lloyds Banking lost 2 to 4%.

In the German market, Puma rallied more than 7.5% after the sportswear brand stood by its full-year profit outlook.

MTU Aero Engines surged 6.1%. RWE and Zalando both gained about 3.1%. Vonovia, Adidas, E.ON, SAP, Siemens Healthineers, Siemens Energy, Merck and Covestro gained 1 to 2.2%.

Commerzbank, Deutsche Bank, Porsche, Deutsche Boerse, BME and Deutsche Post ended weak.

In Paris, Hermes International, Dassault Systemes, Unibail Rodamco, Airbus Group, Veolia, L'Oreal, LVMH and Pernod Ricard gained 1.5 to 3%.

WorldLine, Schneider Electric, Stellantis, Michelin, STMicroElectronics and Credit Agricole lost 1 to 2.3%.

In the Swiss market, shares of computer parts maker Logitech International soared more than 10% after lifting the company lifted its full-year guidance.

On the economic front, a survey showed Eurozone business activity took a surprise turn for the worse this month.

The HCOB's flash euro zone Composite Purchasing Managers' Index (PMI), compiled by S&P Global, dropped to 46.5 from September's 47.2 - hitting its lowest since November 2020.

The euro area private sector shrank for the fifth month in a row in October with output falling the most over a decade if the pandemic period is excluded. The flash composite output index posted 46.5 in October, down from 47.2 in September, the purchasing managers' survey data from S&P Global showed Tuesday.

Consumer confidence in Germany is set to weaken further in November reinforcing fears of a recession as private consumption is unlikely to be a pillar of the economy, survey results published jointly by GfK and the Nuremberg Institute for Market Decisions, showed. The consumer climate index fell to -28.1 in November from a revised -26.7 in the previous month.

The purchasing managers' survey results from S&P Global and the Chartered Institute of Procurement & Supply showed the UK private sector activity deteriorated for the third successive month in October as output continued to fall amid woes of higher interest rates, squeezes in household budgets, and falling exports.

The flash CIPS composite output index rose slightly to 48.6 in October to 48.5 in the previous month. However, any score below 50 indicates contraction in the sector.

Latest UK labor market data underscored the softening situation with the number of people in jobs continuing to fall, official data revealed. The unemployment rate was 4.2% in the three months to August, the Office for National Statistics reported based on the new experimental data. The rate was 4.3% in the preceding period, which was derived with the old survey method.