European Stocks Close On Firm Note On Earnings, Easing Geopolitical Tensions

(RTTNews) - European markets closed on a firm note on Thursday, led by strong gains in the technology sector after U.S. tech major Micron reported stronger-than-expected earnings and raised its revenue forecast, renewing investor confidence in AI. Investors also reacted positively to other corporate news and some rating upgrades.

Easing worries about the Middle East conflict contributed as well to the positive mood in the markets.

The pan European Stoxx 600 climbed 0.8%. The UK's FTSE 100 gained 0.65%, Germany's DAX moved up 1.03% and France's CAC 40 ended 0.55% up. Switzerland's SMI settled with a gain of 0.81%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Iceland, Ireland, Netherlands, Poland, Portugal, Spain and Sweden ended higher.

Czech Republic, Greece, Norway, Russia and Türkiye closed weak.

In the UK market, 3i Group zoomed 11.5%. The private equity firm said its largest portfolio company, discount retailer Action, is set for a good quarter of profit growth and had a cash balance of €699m after the payment of dividend.

Barratt Redrow climbed 4.7%, while Antofagasta, Aberdeen Group, Persimmon and SSE gained 3%-4%.

Hiscox, Barclays, Entain, Anglo American Plc, Natwest Group, Lloyds Banking Group, Howden Joinery Group, Centrica, GSK, Fresnillo, Diploma, IAG and Standard Chartered moved up 1.5%-3%.

easyJet shares climbed sharply higher after the British budget airline rejected a fourth takeover proposal from private equity firm Castlelake, L.P.

LSEG shed about 3%. ICG, BT Group, Lion Finance, United Utilities, Experian, BAE Systems, The Sage Group and Coca-Cola HBC lost 1%-2%.

In the German market, Bayer soared nearly 19% after a US Supreme Court ruling in favor of the pharmaceutical and agrochemical company in lawsuits related to its Roundup weedkiller.

Merck gained about 5%, Deutsche Post moved up 3.6%, Infineon climbed 3.1% and Vonovia advanced nearly 3%.

Volkswagen gained in strength after the automaker agreed to sell a 51% stake in its engine subsidiary Everllence to Bain Capital.

Siemens Energy, Daimler Truck Holding, E.ON, RWE, Volkswagen, Qiagen, Heidelberg Materials, MTU Aero Engines, GEA Group, Deutsche Bank and Adidas also posted notable gains.

Scout24, Fresenius Medical Care, SAP, Deutsche Boerse, BASF and Symrise closed notably lower.

In the French market, Accor, Societe Generale, Saint-Gobain, Engie, STMicroelectronics, Eurofins Scientific, Vinci, Safran, BNP Paribas, Veolia Environment, Legrand, Bouygues and Dassault Systemes gained 1%-3.2%.

Thales ended lower by about 3.1%. Publicis Groupe, Renault, EssilorLuxottica, Edenred, Bureau Veritas and Stellantis shed 1%-1.7%

In economic news, latest results from NIM Consumer Climate powered by GfK showed German consumer sentiment is set to improve in July driven by the moderate rise in income and economic expectations.

The consumer sentiment index rose to -29.2 in July from -29.7 in the previous month. However, the reading was weaker than economists' forecast of -27.8.

The income expectations index climbed to -12.2 in June from -13.0 in May. The economic expectations index advanced to -8.7 from -11.2.

French consumer confidence improved in June after falling to a more than three-year low in the previous month, survey data from the statistical office INSEE showed.

The consumer sentiment index rose to 84.0 in June from 82 in May, which was the lowest since March 2023. The reading was expected to rise to 83.0.