Europe's STOXX 600 jumps 1% as banks lead market rebound, US election in focus
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Banks top weekly gainer
Reckitt jumps after being cleared in preterm formula case
Maersk, Technip Energies rise for second day on outlook boost
Fugro slumps after it reports lower revenue in US, Middle East
Updates with closing levels
By Ankika Biswas and Pranav Kashyap
Nov 1 (Reuters) - Europe's main stock indexnotched its biggest one-day gain in five weeks on Friday, as banks led an overall market rebound after recent declines, with investors assessing economic data, corporate earnings and the upcoming U.S. elections.
The pan-European STOXX 600 index .STOXX closed 1.1% higher, after losing nearly 3% over the past three days, but still logged a weekly decline.
Moving on earnings momentum, the banking sector .SX7P was the top weekly gainer, while food & beverages .SX3P was the worst-hit this week.
For the day, financial services .SXFP, banks and technology .SX8P sectors were at the forefront of investors' buying spree.
All the major regional bourses including those of Germany .GDAXI, France .FCHI, Spain .IBEX and Italy .FTMIB also closed around 1% higher.
Some caution persisted ahead of next week's tightly contested U.S. presidential election, which partly prompted the STOXX 600 to log its steepest monthly decline in a year on Thursday.
As markets anticipate a likely return of Republican Donald Trump to the presidency, the potential for higher tariffs and increased defence budgets is seendealing a blow to an already struggling European economy.
Investors have also been on edge on uncertainties around the European Central Bank's interest-rate cut path amid recent economic data, ahead of the U.S. Federal Reserve's policy decision next week.
"The stronger-than-expected euro-zone GDP and inflation data released this week, as well as some comments by ECB policymakers, poured some cold water on expectations that ECB might accelerate the pace of easing," said Franziska Palmas, Capital Economics' senior Europe economist.
"However, by the December meeting, renewed economic weakness and well-behaved inflation will convince the ECB to cut the deposit rate by 50 bps."
Reckitt Benckiser RKT.L jumped 7% after the British consumer goods company, along with U.S.-based Abbott Labs, was cleared of liability in a preterm formula case.
A.P. Moller-Maersk MAERSKb.CO rose 4%, extending gains for the second day following the shipping company's strong demand outlook .
French energy infrastructure company Technip Energies TE.PA was also among the top STOXX 600 gainers, up 6% and rising for the second day after lifting its annual revenue guidance .
Italian lender UniCredit CRDI.MI rose 3.5%, likely boosted by Fitch Ratings increasing its long-term rating on debt to BBB-plus.
On the flip side, Fugro FUGR.AS slumped 16% after the geotechnical services provider's third-quarter revenue unexpectedly fell in the U.S. and the Middle East.
Lufthansa LHAG.DE lost 3% after HSBC downgraded the German airline's stock to "hold" from "buy".
In another likely boost for sentiment, Swiss inflation fell to an over three-year low, indicating more Swiss National Bank rate cuts.
Reporting by Pranav Kashyap and Ankika Biswas in Bengaluru; Editing by Subhranshu Sahu, Saumyadeb Chakrabarty and Toby Chopra
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
