European Stocks Close On Bright Note As Investors Focus On Earnings, Economic Data

(RTTNews) - European stocks closed higher on Thursday with several markets in the region climbing to record highs, as investors indulged in some hectic buying at several counters, reacting to quarterly earnings updates, and the Bank of England's decision to lower interest rate.

Investors shrugged off concerns about tariffs and trade war, and the mood remained fairly bullish in almost all the markets in the region.

The pan European Stoxx 600 climbed 1.17%. The U.K.'s FTSE 100 ended higher by 1.21%, Germany's DAX and France's CAC 40 both closed stronger by 1.47%, while Switzerland's SMI gained 0.36%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Poland, Russia, Spain, Sweden and Turkiye closed notably higher.

Norway ended weak, while Portugal closed flat.

The BoE reduced its interest rate by a quarter-point, citing progress on disinflation path. The Monetary Policy Committee voted 7-2 to reduce the benchmark bank rate to 4.5% from 4.75%. The decision came in line with expectations.

Previously, the BoE had reduced the rate by 25 basis points each in August and November last year.

The MPC said a gradual and careful approach to the further withdrawal of monetary policy restraint is appropriate.

"Monetary policy would need to continue to remain restrictive for sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term had dissipated further," the bank said.

The MPC would decide the appropriate degree of monetary policy restrictiveness at each meeting, BoE added.

In the UK market, AstraZeneca climbed nearly 6%. The company reported profit before tax of $1.666 billion for the fourth quarter, 86% higher than $897 million in the same quarter a year ago. Operating profit rose to $2.036 billion from $1.234 billion in the prior year. Excluding one-time items, core operating profit was $4.199 billion.

Net profit increased 56% to $1.5 billion or $0.97 per share from $959 million or $0.62 per share last year. Core EPS was $2.09, up 44% year-on-year.

Antofagasta, Anglo American Plc, EasyJet, Barclays Group, Beazley, Prudential, Standard Chartered, IAG, Coca-Cola HBC, Natwest Group and Mondi gained 3 to 4.5%.

Pershing Square Holdings, Vodafone Group, HSBC Holdings, Rio Tinto, Howden Joinery, St. James's Place, BT Group, M&G, Schrodders, Ashtead Group, Kingfisher, Lloyds Group and Imperial Brands moved up 2 to 3%.

SSE fell 3.27%. Centrica, Pearson, Compass Group, BAE Systems, Auto Trader Group, United Utilities, Smith & Nephew, Persimmon, Halma, National Grid, Severn Trent and IMI also closed notably lower.

In the German market, BASF rallied nearly 7% after submitting registrations in the Asia Pacific for a new rice insecticide.

Siemens Healthineers climbed 5.5%. on strong earnings and encouraging guidance. For the first quarter, net income grew 11% to 478 million euros from last year's 432 million euros. Basic earnings per share were 0.42 euro, up 10% from last year's 0.39 euro. Adjusted basic earnings per share were 0.51 euro, compared to 0.49 euro a year ago.

Infineon, HeidelbergCement, Siemens, Deutsche Bank, Volkswagen, Brenntag, Siemens Energy, Deutsche Post, Adidas, Daimler Truck Holding, BMW, Zalando, Puma, Mercedes-Benz, Commerzbank and Allianz gained 1.5 to 5.5%.

Rheinmetall fell more than 5%. Qiagen closed lower by about 3.1%. RWE, Hannover Rueck, Sartorius, Fresenius and MTU Aero Engines lost 1.2 to 2.5%.

In the French market, Societe Generale soared nearly 14%. The bank said that net income for the fourth-quarter increased to 1.04 billion euros from 429 million euros in the year-ago quarter. Net banking income increased to 6.62 billion euros from 5.96 billion euros.

ArcelorMittal gained about 13% after the company reported narrower net loss in its fourth-quarter, and higher sales. Net loss attributable to equity holders of the parent was $390 million, compared to prior year's loss of $2.97 billion. Basic loss per share was $0.51, compared to loss of $3.57 last year.

Saint-Gobain surged 6.3%. Kering, Pernod Ricard, Schneider Electric, BNP Paribas, STMicroElectronics, L'Oreal, Renault, Vinci, Unibail Rodamco, Credit Agricole and LVMH gained 2 to 4%.

Thales and Engie closed lower by about 2.4% and 2.3%, respectively. Dassault Systemes ended nearly 1% down.

In economic news, Eurozone retail sales fell 0.2% on a monthly basis in December after remaining unchanged in November, data from Eurostat said. Sales were expected to drop 0.1%.

The UK construction sector shrank in January, ending a 10-month period of expansion due to shrinking orders and rising cost pressures, survey results from S&P Global showe. The construction Purchasing Managers' Index rose to 48.1 in January from 53.3 in December. The index registered below the 50.0 threshold for the first time since February 2024.

Data from S&P Global showed the French construction activity in January 2025 declined at the slowest pace since November 2023. The HCOB Construction PMI came in at 44.5 for January, up from December's 42.6 score.

Data from Destatis showed Germany's factory orders rebounded at a much stronger than expected pace in December largely driven by the manufacture of transport equipment. New orders increased 6.9% month-on-month in December, reversing a revised 5.2% fall in November. Orders were forecast to grow only 1.9%. Excluding large-scale orders, new orders were 2.2% higher than in the previous month.

A report from S&P Global said the Construction PMI in Germany increased to 42.50 points in January from 37.80 points in December of 2024.