European Shares Rise On Earnings Boost, Rate Cut Hopes

(RTTNews) - European stocks climbed on Thursday as strong earnings from a slew of companies and dovish comments from Bank of England (BoE) Governor Andrew Bailey offset disappointing business activity readings from the region.

The BoE Governor said that U.K. inflation is fading more rapidly than central bankers expected, boosting bets on another rate cut on Nov. 7.

"Disinflation is happening I think faster than we expected it to, but we have still genuine question marks about whether there have been some structural changes in the economy," he was quoted as saying at an event organized by the Institute of International Finance in Washington DC.

Separately, Reuters reported citing sources that ECB policymakers are debating whether rates have to go below neutral to stimulate the economy.

In economic releases, Eurozone private sector activity shrank moderately in October on continuing contraction in manufacturing, flash survey data from S&P Global showed.

The HCOB flash composite output index rose slightly to 49.7 in October from 49.6 a month ago.

Elsewhere, the U.K. private sector activity expanded at the weakest pace in almost a year in October due to weak demand conditions amid heightened economic uncertainty, flash survey results published by S&P Global revealed.

The flash composite output index dropped to 51.7 in October from 52.6 in September.

The pan-European STOXX 600 rose 0.6 percent to 521.86 after falling 0.3 percent on Wednesday. The German DAX jumped 0.7 percent, France's CAC 40 added 0.7 percent and the U.K.'s FTSE 100 surged 0.8 percent.

In corporate news, Indivior jumped 9 percent after the British addiction treatment specialist reported a strong third-quarter performance.

Fund manager Abrdn plunged 8 percent as it reported deeper than expected outflows of client funds in the third quarter.

Essentra gained about 1 percent. The essential components manufacturer said that FY24 adjusted operating profits would be in line with market expectations.

GSK was also up 1 percent after announcing new positive data for RSV vaccine, Arexvy in younger adults.

Distribution and outsourcing firm Bunzl fell 2.4 percent despite reiterating its full-year guidance.

Lender Barclays soared nearly 4 percent after third-quarter profit beat expectations. Global miner Anglo American surged 4.1 percent after raising platinum and nickel production guidance.

Consumer goods giant Unilever gained 3.9 percent as it reported slightly better-than-expected underlying quarterly sales.

Birkin bag maker Hermes International rallied 1.8 percent in Paris after it reported an 11.3 percent rise in third-quarter sales.

Peer Kering climbed 1.1 percent after reporting higher third-quarter sales.

Orange added 1.7 percent. The telecommunications and digital service provider reported revenue of 9.995 billion euros for the third quarter, up 1.6 percent from the corresponding period a year ago, mainly helped by growth retail services.

Renault soared 6.5 percent as the carmaker reported an unexpected rise in quarterly revenues.

Caterer Sodexo advanced 5.2 percent after reporting higher than expected sales growth for the year through Aug. 3.

Consumer goods group Danone added 2.3 percent after Q3 organic revenue growth exceeded market expectations.

Tyre maker Michelin plunged 7 percent after cutting its annual sales volume forecast. Nivea maker Beiersdorf jumped 3.4 percent after reporting an increase in group sales for the first nine months of 2024.

Symrise fell 2.2 percent after the fragrance, flavor and nutrition group posted Q3 sales in the reporting currency slightly below estimates.