Major European Markets Close On Firm Note

(RTTNews) - The major European markets closed higher on Thursday, supported by gains in retail, luxury, pharmaceuticals and industrials sectors even as tech stocks were under some pressure amid uncertainty about returns on AI-related investments. Softening global bond yields and strong UK GDP data aided sentiment.

The pan European Stoxx 600 climbed 0.38%. The UK's FTSE 100 moved up 1.08%, Germany's DAX gained 0.33% and France's CAC 40 closed 0.78% up. Switzerland's SMI jumped 1.55%.

Among other markets in Europe, Belgium, Czech Republic and Denmark ended higher.

Austria, Finland, Greece, Iceland, Netherlands, Norway, Portugal, Russia, Spain, Sweden and Türkiye closed weak, while Ireland and Poland ended flat.

In the UK market, Experian climbed nearly 6%. The Sage Group gained 5.7%, while Compass Group, JD Sports Fashion, BT Group, Intercontinental Hotels Group, Autotrader Group and Relx moved up 4%-4.5%.

Smith & Nephew, British Land, Haleon, LSEG, Pearson, AstraZeneca, Endeavour Mining, Fresnillo, WPP, Next, Severn Trent and St. James's Place rallied 3%-3.7%.

GSK, Admiral Group, Burberry Group, United Utilities, Coca-Cola Europacific Partners, IG Group Holdings, Land Securities, Airtel Africa, Kingfisher, Reckitt Benckiser, Bunzl, Vodafone Group and Associated British Foods also moved up sharply.

Computacenter dropped 5.6%. Polar Capital Technology Trust drifted down 4.7%. Antofagasta and Weir both ended down by 4%.

Ithaca Energy, Rio Tinto, Halma, Segro, IMI, Smiths Group, Diploma, Pershing Square Holdings and Scottish Mortgage also closed notably lower.

In the German market, Scout24 soared 7.5%. Rheinmetall and Zalando gained 3.9% and 3.8%, respectively. Fresenius Medical Care, Symrise, SAP, Munich RE, Adidas, Siemens Healthineers, Deutsche Post, E.ON, Vonovia, Hannover RE and Deutsche Telekom also posted strong gains.

Infineon ended down 5.2%. Hochtief closed lower by about 3.5%. Siemens Energy, RWE, Siemens, Deutsche Post, Bayer, MTU Aero Engines and Commerzbank lost 1%-2.2%.

In the French market, Publicis Groupe, Capgemini, Hermes International, L'Oreal, Orange, Dassault Systemes and Carrefour gained 3%-3.7%.

Teleperformance, Airbus, Edenred, LVMH, Bouygues, Saint-Gobain, Accor, Eurofins Scientific, Danone, Air Liquide and Unibail Rodamco also posted strong gains.

STMicroelectronics tumbled more than 6%. Schneider Electric closed down nearly 2.5%. Legrand, Credit Agricole and BNP Paribas also closed weak.

Data released by the Office for National Statistics showed UK's Gross Domestic Product grew 0.1% in August from the last month. Although this was weaker than the 0.4% growth seen in July, the rate came in contrast to the expected fall of 0.1%.

Data showed that economic growth was underpinned by industrial production, as services output registered no growth and construction shrank 0.2%.

Industrial production climbed at a faster pace of 0.8% on a monthly basis, after rising 0.3% in July. The increase in manufacturing output rose to 1.2% from 1%. Year-on-year, industrial production growth doubled to 1.6% from 0.8% in July. At the same time, manufacturing output rose 3% after rising 2.2%.

Compared with the same month a year ago, GDP advanced 2.1% higher in August, marking the strongest expansion in four years.

Another report from ONS today showed that the visible trade deficit narrowed to GBP 18.0 billion from GBP 19.3 billion in July as imports declined 2.4%. Exports of goods dropped only 0.1%.

The overall trade gap, including goods and services, fell to GBP 920 million from GBP 2.3 billion in July.

Final data from the statistical office INSEE showed consumer price inflation in France rose to 3.1% in September from 2.4% in August. A similar higher rate was last seen in January 2024. The rate was also slightly above the initial estimate of 3%.

EU harmonized inflation climbed to 3.4%, as initially estimated, from 2.6% in the prior month.

Data from Eurostat showed industrial output in Euro Zone dropped 0.5% on a monthly basis in August, which was bigger than the 0.3% fall posted in July. Moreover, this was third consecutive decrease. Production was expected to remain flat.

Year-on-year, industrial output logged a decline of 1.1% after easing 0.3% in July. The annual fall was weaker than economists' forecast of -0.1%.

Earlier this week, the International Monetary Fund projected Eurozone growth at 1.1% in 2026 and 1.2% in 2027. The forecast was unchanged from the April report for both years.