Investing.com - European stock markets rose Thursday, as investors digested more third-quarter corporate earnings as well as the latest regional economic activity data.
At 09:50 ET (13:50 GMT), the DAX index in Germany traded 0.6% higher, the CAC 40 in France rose 0.6% and the FTSE 100 in the U.K. gained 0.8%.
PMIs in focus
Data released earlier Thursday showed that eurozone business activity remained in contractionary territory this month. although there were some signs of hope.
HCOB's preliminary composite eurozone Purchasing Managers' Index, compiled by S&P Global, nudged up to 49.7 in October from September's 49.6, but remained below the 50 mark separating growth from contraction for a second straight month.
Business activity in Germany, Europe's largest economy, shrank in October but less steeply than in September, according to its PMI.
In France, the currency union's second largest economy, the dominant services sector contracted at its sharpest rate in seven months, while the PMI for Britain, outside the European Union, showed businesses reported their slowest growth in 11 months.
The ECB has cut interest rates three times already this year, all by 25 basis points, and expectations are growing that the central bank will agree to a larger reduction of half a percentage point in December.
Barclays boosted by investment bank
There are more earnings for investors to digest Thursday, as the third quarter results season continues.
Barclays (LON:BARC) stock rose 5% after the British lender reported a hefty jump in net profit for the third quarter, as its investment bank cashed in on a jump in corporate dealmaking and trading during the period.
Unilever (LON:ULVR) stock rose 3% after the consumer goods giant reported a rise in underlying quarterly sales after winning back more shoppers with product innovations and slower price increases, posting its biggest gain in sales volumes in three-and a-half-years.
Hermes (EPA:HRMS) stock rose 2% after the French company reported a substantial rise in third-quarter sales, continuing to outshine rivals hit hard by a downturn in China as its luxury handbags lure wealthy shoppers.
Danone (EPA:DANO) stock rose 2.6% after the French food company beat third-quarter sales expectations, boosted by higher sales volumes as price hikes slowed, and reflecting strong demand in North America.
Orange (EPA:ORAN) stock rose 1.2% after the French telecom operator reported third-quarter profit that was slightly ahead of market expectations, driven by a strong performance at its Africa and Middle East business.
On the flip side, Travis Perkins (LON:TPK) fell 4.6% after the UK-based supplier of building materials cut its full-year earnings guidance for 2024, its second profit warning in just a few months.
Crude rebounds on Middle East worries
Oil prices rose Thursday, rebounding after the previous session’s losses, on worries that an escalation of the conflict in the Middle East could impact supply from the key region.
By 09:50 ET, the Brent contract climbed 1.6% to $76.16 per barrel, while U.S. crude futures (WTI) traded 1.7% higher at $71.97 per barrel.
Israel launched strikes on Syrian capital Damascus early on Thursday, according to the Syrian state media, threatening an expansion of the conflict in the region amid growing anticipation of a strike against Iran in retaliation for an October 1 attack.
Oil prices have gained nearly 4% so far this week, helping trim last week's losses of than 7% on worries about Chinese demand and easing concerns about potential disruptions caused by fighting in the Middle East.