Pos­i­tive man­u­fac­tur­ing data pushes Euro­pean stocks higher

Malta Independent - - Financial - This ar­ti­cle was com­piled by BOV As­set Man­age­ment Lim­ited, a mem­ber of the BOV Group. BOV As­set Man­age­ment,TG Com­plex, Suite 2, Level 3, Brew­ery Str., Mriehel BKR 3000. Email: in­foas­set­man­age­ment@bov.com In­ter­net ad­dress: www.bo­vas­set­man­age­ment.com. BOV A

A jump in Adi­das fol­low­ing an up­beat fore­cast from U.S. ri­val Nike and bet­ter-than-ex­pected euro zone man­u­fac­tur­ing data on Wed­nes­day helped Euro­pean stocks ex­tend a re­cov­ery from a steep sell-off ear­lier this week.

The pan-Euro­pean STOXX 600 rose 1.3%, with Ger­many’s DAX, Lon­don’s FTSE 100 and France’s CAC 40 gain­ing be­tween 1.6% and 2.0%. In­vestors took heart from data that showed Ger­man man­u­fac­tur­ing sec­tor ac­tiv­ity im­proved in Septem­ber, with IHS Markit’s flash PMI ris­ing to 56.6, its high­est level in more than two years. The sur­vey showed man­u­fac­tur­ers across the euro zone fared much bet­ter.

A weak­en­ing euro also boosted shares of ex­porters that draw a large part of their rev­enue from over­seas, driv­ing the euro zone blue-chip in­dex up 1.6%. How­ever, the sur­vey showed broader busi­ness growth ground to a halt this month as the bloc’s ser­vice in­dus­try slammed into re­verse, knocked by a resur­gence in coro­n­avirus cases that pushed gov­ern­ments to rein­tro­duce re­stric­tions.

Lon­don’s ex­porter-heavy FTSE 100 jumped 1.9% as the pound was ham­mered by fresh UK curbs to tackle a sec­ond wave of COVID-19 in­fec­tions. Fears of such re­stric­tions slow­ing an eco­nomic re­bound drove the STOXX 600 to its worst sell-off in three months on Mon­day, but mar­kets have sta­bilised since on hopes that the curbs would be more tar­geted.

Adi­das jumped 6.3% and Puma rose 4.9% af­ter U.S. sportswear maker Nike re­ported strong earn­ings and fore­cast bet­ter-than-ex­pected sales for 2020. Os­ram Licht surged 14.1% af­ter Aus­trian sen­sor maker Ams said it had signed a so-called dom­i­na­tion and profit and loss trans­fer agree­ment as a key step to­wards clos­ing its 4.6 bil­lion euro takeover of the Ger­man firm. Travel stocks re­bounded af­ter a four-day run of losses, with Ger­many’s Lufthansa jump­ing 5.3% af­ter a com­pany ex­ec­u­tive said the air­line was plan­ning to make rapid COVID19 anti­gen tests avail­able to pas­sen­gers in Oc­to­ber. Bri­tish Air­ways-owner IAG jumped 6.9%.

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