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Evergrande bailout, earnings support European stocks Reuters

© Reuters. The German stock index DAX graph was taken on October 21, 2021 on the Frankfurt Stock Exchange in Germany. REUTERS / Staff

Anisha Circer

(Reuters)-European equities on Friday for nearly six weeks, as unexpected interest payments by the debt-stricken Evergrande Group boosted the mood, and a surge in technology stocks and strong earnings from L’Oreal in France provided further support. It was traded at a high price.

The added 0.5% was expected to record a third straight week of rise, tracking Asian peers on the news that Chinese real estate developers made bond payments to avoid defaults.

Within the sector, European personal and household products, as well as tech products, rose 1.6% and 1.3%, respectively, and were on the top gain list.

France’s best-in-class stocks rose 1.1%, outpacing European peers, and L’Oréal stocks surged 6.5% in response to the good performance of cosmetics companies.

Shares of Dutch semiconductor equipment maker ASML and German software company SAP have each risen about 2% after stumbling earlier this week following the results.

Forte sales trader Keith Temperton said, “CEOs have commented that the supply chain has been damaged because lower expectations have significantly exceeded earnings, but some companies are on top of that. It says there is. ” stock. “It’s looking forward to the market.”

Wall Street earnings were strong and hit record highs on Thursday, but Wall Street in Europe was less than 1% below its August peak.

Europe Inc expects third-quarter profit to grow 47.6% to € 96.1 billion ($ 112 billion). According to the latest Refinitiv I / B / E / S data, it is a slight improvement over last week’s 46.7% growth forecast.

Investors seem to have looked back on a study that showed that growth in eurozone business slowed in October as companies face rising costs due to supply chain constraints.

Inflation expectations in the euro area have reached their highest levels in recent years, putting further pressure on the European Central Bank, which insists on maintaining the stimulus of the crisis. The central bank will meet next week. [GVD/EUR]

“The temporary nature of inflation is becoming more tenacious … but things are discounted,” Temperton added.

French Renault (PA :) It fell 1.8% after automakers said this year’s production losses were much higher than previously predicted due to a global chip shortage.

Swedish mining firm Boliden also fell 4.9% in the third quarter as operating profit fell below market expectations, pressured by rising costs and lower production.

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Evergrande bailout, earnings support European stocks Reuters

Source link Evergrande bailout, earnings support European stocks Reuters

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