FX.co ★ European Stocks Close Higher As Investors React Positively To Earnings Announcements

European stock markets closed positively on Friday as investors responded to robust corporate earnings announcements, while also speculating on the Federal Reserve's next move in light of unexpectedly weak U.S. job growth for October.

Strong earnings reports from Amazon and Intel played a considerable role in boosting market sentiment. Additionally, shares of China-linked luxury goods saw gains after a private survey indicated a recovery in China's manufacturing sector in October, following a previous contraction.

The pan-European Stoxx 600 index rose by 1.09%. The UK's FTSE 100 increased by 0.83%, Germany's DAX advanced by 0.93%, and France's CAC 40 went up by 0.8%, while Switzerland’s SMI saw a 1.48% rise.

Elsewhere in Europe, stock markets in Belgium, Denmark, Finland, Greece, Iceland, Ireland, the Netherlands, Norway, Portugal, Russia, Spain, Sweden, and Turkey also closed higher. Meanwhile, Poland experienced a decline, and Austria remained neutral.

In the UK market, Reckitt Benckiser surged by 6.6% following the clearance of its liability in a baby formula trial. Schroders saw a gain of 4.3%, and ICG climbed 3.3%. Other notable gains were observed in companies such as Associated British Foods, Melrose Industries, Rolls-Royce Holdings, and others, which increased by 1.7% to 2.8%. Conversely, Vistry Group, Entain, DS Smith, Fresnillo, Sainsbury’s, and Persimmon faced declines.

Within the German market, Sartorius rose approximately 3.5%. Additional gains of 1.2% to 3% were noted among Puma, Siemens Energy, Fresenius Medical Care, Merck, BASF, and several other major names.

In France, Societe Generale climbed over 3.5%, and Capgemini increased by 3%. Dassault Systemes closed nearly 2.5% higher. Gains of 1% to 2% were also seen in companies such as Legrand, Sanofi, Carrefour, and others. However, Renault fell by 1.5%, while AXA and STMicroElectronics ended slightly down.

In economic news, data from S&P Global revealed that the UK’s manufacturing activity contracted for the first time since April, as manufacturers adopted a cautious stance on investment and spending ahead of the budget announcement. The manufacturing Purchasing Managers' Index (PMI) reduced to 49.9 in October, from 51.5 in September.

House price inflation in the UK eased in October for the first time in six months, slowing to 2.4% from 3.2% in September, with economists anticipating a decrease to 2.8%. On a monthly basis, house prices rose by just 0.1%, following a 0.6% increase in the previous month.

Switzerland reported an unexpected easing in consumer price inflation in October, hitting the lowest level in over three years. The consumer price index increased by 0.6% on an annual basis, slower than the 0.8% rise seen in September, defying economists' expectations of stable inflation at 0.8%.