Europe’s Stoxx 600 bounced back with a 1 per cent gain, driven by strong performances in the energy and technology sectors, while positive earnings reports added to the upbeat mood.
The pan-European Stoxx 600 index gained 1.1 per cent to 507.03 points. But it was pinned near a three-month low, after falling in the previous two sessions.
All regional bourses also advanced between 0.5 and 1.4 per cent.
ASML gained 6.9 per cent after Europe’s largest tech firm said it expects sales to grow by 8 to 14 per cent over the coming five years, boosting the tech sub-sector 3.1 per cent.
Telecoms was among the top five major gainers in the sub-sectors, adding 1.8 per cent, while heavyweight energy stocks advanced 1.7 per cent.
Deutsche Telekom advanced 3.3 per cent after Europe’s largest telecoms group by market capitalisation raised its full-year core profit forecast and marginally beat third-quarter core profit expectations.
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On the macro front, eurozone gross domestic product rose by 0.4 per cent in the third quarter, in line with a Reuters poll of estimates, while the bloc’s flash employment grew more than expected in the third quarter, rising 0.2 per cent.
“European indices finally got a bit of a break today, as dip buyers came in and prompted substantial gains in these beaten-down markets. Key levels were defended and the broad-based buying augurs well for a near-term recovery,” said Chris Beauchamp, chief market analyst at online trading platform IG.
Recent eurozone data showed inflation is on track to reach the ECB’s 2 per cent goal, its vice-president Luis de Guindos said.
Despite Thursday’s gains, the Stoxx 600 index was yet to rise above last week’s levels, when European equities were rocked after Donald Trump’s sweeping victory in the US presidential election.
The likelihood of tariffs by the Trump administration have kept European investors on edge.
Comments from ECB President Christine Lagarde will be on investors’ radar.
Among other stocks, Monte dei Paschi di Siena (MPS) jumped 11.6 per cent after Italy sold a 15 per cent stake in the bank to rival Banco BPM, which also gained 4.7 per cent.
Siemens rose 4.9 per cent, after the German engineering group beat fourth-quarter profit estimates.
Burberry soared 18.7 per cent after announcing a turnaround plan that was met with relief, as the British luxury retailer swung to a loss in the first half of its financial year.
Allegro slid 11.3 per cent after Poland’s biggest e-commerce platform said it expects a decline in its fourth-quarter earnings. REUTERS
