European markets closed higher Thursday as momentum in markets picked up on the back of robust corporate earnings.
The pan-European Stoxx 600 was up 0.8% by the close, having reversed opening losses. Industrials added 2.5% to lead gains while travel and leisure stocks dropped 2%.
Earnings remain a key driver of sentiment in European equity markets. Among the big names to report before the bell on Thursday were AstraZeneca, Deutsche Telekom, Henkel, ArcelorMittal and Wienerberger.
On Wall Street, The S&P 500 hovered near the flatline as the broad-market index struggled to build on its longest winning streak since November 2021.
Most Asia-Pacific markets edged higher overnight, with data from China showing consumer prices shrank faster than expected in October.
Afternoon biggest movers: Adyen up 33%, Azelis Group up 11%
Shares of Adyen soared more than 33% on Thursday to lead the Stoxx 600 after the Dutch payment company issued new targets deemed more realistic by the market.
Belgian food and chemicals distributor Azelis Group saw its shares jump more than 11% after reporting strong progress on margins over the first nine months of the year.
At the bottom of the European blue chip index, Danish health care company Coloplast fell more than 6% after missing fourth-quarter earnings expectations as inflation affected distribution costs.
- Elliot Smith
European stocks gather steam
The pan-European Stoxx 600 was up 0.8% by mid-afternoon, having reversed opening losses. Industrials added 2.1% to lead gains while travel and leisure stocks dropped 2%.
AstraZeneca climbs after raising earnings forecast
AstraZeneca shares climbed 2.8% on Thursday morning after the Anglo-Swedish pharmaceutical giant upped its annual earnings forecast and beat third-quarter expectations on the back of strong demand for its cancer drugs. It also announced a $2 billion deal to build its anti-obesity drug pipeline.
"The group's main priority remains on reinvesting in the business with an additional seven pivotal trials initiated in Q3 2023 and on track to initiate 30 over 2023," said Sheena Berry, healthcare analyst at Quilter Cheviot.
"This is a strong pipeline and will position AstraZeneca strongly for the future. There are some slight risks in that a couple of Enhertu breast trial readouts have been pushed to later than 2024, but we continue to expect a number of oncology readouts during the year so this is likely to be fairly minimal."
- Elliot Smith
Biggest movers: Adyen up 29%, Coloplast down 4%
Shares of Adyen soared more than 29% on Thursday morning after the Dutch payment company issued new targets deemed more realistic by the market.
At the bottom of the Stoxx 600 index, Danish health care company Coloplast fell 4.4% after missing fourth-quarter earnings expectations as inflation affected distribution costs.
- Elliot Smith
European stocks reverse losses
The pan-European Stoxx 600 was up 0.2% around an hour into trading, having reversed opening losses. Travel and leisure stocks sank 3.1% while industrials added 1.3%.
Europe stocks fall at the open
CNBC Pro: 'Golden opportunity': Morgan Stanley says it's a good time to buy gold stocks — and names its top global picks
Now is a good time to buy gold stocks, according to Morgan Stanley.
Tensions in the Middle East, brought on by the Israel-Hamas war, had triggered a gold "safe-haven" rally as investments in the precious metal picked up. The rally has since fizzled and gold spot prices have moved up some 0.05% in the year to date.
Notably, however, gold stocks underperformed gold prices by about 20% in the last three months, the investment bank's analysts said, naming several stocks to play the "golden opportunity."
— Amala Balakrishner
CNBC Pro: Want 8% yield? Buy 'fallen angels' in the U.S. bond market, BNP Paribas says
The bond bear market is the worst in more than 200 years, according to BNP Paribas' global chief investment officer.
But, he said, one corner of the bond market is an opportunity for investors: U.S. "fallen angels" in the high-yield credit segment.
CNBC Pro takes a look at some of the top-rated funds and exchange-traded funds, according to Morningstar.
— Weizhen Tan
European markets: Here are the opening calls
European markets are set to open lower Tuesday.
The U.K.'s FTSE 100 index is expected to open 13 points lower at 7,671, Germany's DAX down 41 points at 17,390, France's CAC 13 points lower at 7,913 and Italy's FTSE MIB down 57 points at 32,560, according to data from IG.
Earnings are set to come from Ferrovial, Serco Group, Travis Perkins and Abrdn. The latest French and German consumer sentiment data will be published Tuesday.
— Holly Ellyatt