European shares spurred on by earnings and macro data
LONDON, Nov 1 (Reuters) - Investors set aside growth worries as European shares clawed back the previous session's losses on Thursday, buoyed by earnings from European companies and better macro economic data in China and the United States.
The FTSEurofirst provisionally closed up 13.05 points, or 1.2 percent, at 1,109.43, having fallen 0.6 percent on Wednesday.
Telecoms and financials were among the top gainers after results from BT Group, Lloyds Banking Group and Legal & General lifted sentiment in their respective sectors.
Telecoms rose 1.4 percent with BT Group accounting for much of that gain as the UK-listed telecoms firm climbed 7 percent on relief that cost cutting measures helped the company protect its earnings outlook.
Some 56 percent of European companies have so far beaten or met expectations in the current quarter, although earnings estimates for the fourth quarter have been cut by an average 1.2 percent on those companies that have reported, according to Thomson Reuters Starmine data, reflecting some outlook concerns.
``Based on the very recent evidence market valuations can absorb a little bit of a tick down in earnings estimations. Maybe the market is ahead of the analysts on this one,'' Paul Kavanagh, market strategist at Killik & Co, said.
Volumes improved and equities were given a further lift after data in the U.S. pointed to a slow healing in the labor market, while manufacturing picked up modestly in October. That followed data overnight showing big Asian economies were slowly picking up after a year spent battling against global headwinds.