Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Europe's STOXX 600 extends winning streak to fourth day; Avanza surges

Published 10/18/2022, 03:51 AM
Updated 10/18/2022, 12:15 PM
© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 17, 2022.  REUTERS/Staff
NG
-
RIO
-
STOXX
-

By Amruta Khandekar and Devik Jain

(Reuters) -Europe's STOXX 600 rose for the fourth straight session on Tuesday, building on the previous session's rally that was driven by Britain's reversal of its fiscal plan, with investors keeping a watch on earnings to gauge the economic outlook.

The region-wide index ended 0.34% higher. It logged its best day in near two weeks on Monday after Britain's new finance minister Jeremy Hunt scrapped most of Prime Minister Liz Truss's 45 billion pounds of unfunded tax cuts that led to market turmoil and forced the Bank of England to intervene.

Construction and materials and automakers sectors rose 1.9% and 1.7%, respectively and were the top sectoral gainers.

Shares of chipmakers, including ASML Holdings and Nordic Semiconductor, rose between 0.8% and 5.9% amid a risk-on sentiment in markets.

"We have got the short term relief in the UK and the political environment there, we have seen (earnings) coming out in the U.S. which so far have been (decent) and then greed will overtake fear and people will look at these prices and think, we've got to take advantage," said John Woolfitt, director of trading at Atlantic Capital Markets.

"But equally, everybody has to keep an eye on the next round of inflationary data... we have got to be mindful that there's still a bigger spectre in the markets looming on the global growth side."

With central banks aggressively tightening monetary policy in the face of decades-high inflation, markets are parsing forecasts from companies to gauge the impact of macro pressures.

France's Publicis Groupe gained 2.3% after the world's third-biggest advertising group raised its full-year outlook for the second time this year.

Avanza Bank climbed 12% after the Swedish financial group posted strong third-quarter operating profit and revenue.

Shares of Danish peer Nordnet also gain 8.3%.

Telecom Italia (BIT:TLIT) (TIM) added 6.4% on a media report that private equity fund CVC might launch a full takeover bid for the Italian phone group.

Legrand rose 3% after Morgan Stanley (NYSE:MS) upgraded the French electrical equipment maker's stock to "overweight".

Rio Tinto (NYSE:RIO) slipped 1.5% after the London-listed miner projected annual iron ore shipments at the lower end of its forecast amid weak global demand.

© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 17, 2022.  REUTERS/Staff

PKN Orlen slid 4.5% after Poland's largest bank PKO Bank Polski started the sale of 14.16 million of the Polish refiner's shares via an accelerated book building process.

Galp Energia dipped 4.9% as the Portuguese oil and gas company flagged it may face additional sourcing disruptions after its supplier Nigeria LNG declared force majeure due to widespread flooding.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.