🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

European shares recover amid strong earnings and healthcare stocks surge

EditorRachael Rajan
Published 11/08/2023, 02:30 PM
© Reuters.
MKS
-
SLHN
-
CONG
-
CBKG
-
GMAB
-
VWS
-
AD
-
EONGn
-
PSI20
-
STOXX
-
ABNd
-

Today, European shares experienced an upturn, with the STOXX 600 closing 0.3% higher, following a week of declines. This rebound was largely driven by robust earnings reports and an uptick in healthcare stocks. According to data from LSEG, 55.3% of STOXX 600 companies surpassed earnings expectations, contributing to the market's recovery.

Among the companies that reported better-than-expected results or forecasts were Vestas, Continental, Commerzbank (ETR:CBKG), Ambu, and Genmab (NASDAQ:GMAB), leading to increases in their respective stock prices. British retailer Marks & Spencer (OTC:MAKSY) also saw a surge in shares due to a significant rise in first-half profit.

However, not all sectors shared in the rally. Swiss Life Holding AG and Ahold Delhaize experienced share price decreases due to market concerns over their outlooks. Earlier today, Ahold Delhaize announced a cut in its 2023 earnings forecast due to issues with U.S. margins, triggering a 5.9% decrease in its stock. Similarly, Swiss Life Holding AG led a decline in insurance stocks as it reported weak results.

In other news, Euro zone retail sales for September met expectations and consumers' inflation expectations for the next year rose to 4%. Pantheon Macroeconomics' Melanie Debono forecasts an end to the squeeze on real incomes in Q4 due to falling inflation and steady wage growth.

Central bankers are putting more efforts into curbing inflationary pressures. U.S. Federal Reserve Governor Michelle Bowman hinted at potential rate hikes, aligning with the financial world's anticipation for rate forecasts from Jerome Powell and Christine Lagarde.

On another note, E.ON expects a significant hit to its Q4 profit while Portugal's PSI Index saw a slight increase following the resignation of Prime Minister Antonio Costa.

Earlier today, the STOXX 600 reached a one-week low, continuing a three-day fall. The market was particularly impacted by insurance stocks, with Swiss Life Holding AG leading the decline due to weak results. ABN Amro's shares also dropped by 7.5% following disappointing Q3 net interest income. Despite the overall market downturn, Vestas' shares rose by 6.8% due to robust Q3 profits.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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.