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European stocks open higher after upbeat H&M, STMicro results

Published 01/10/2020, 08:20
Updated 01/10/2020, 08:24
© Reuters.
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(For a live blog on European stocks, type LIVE/ in an Eikon
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Oct 1 (Reuters) - European stocks rose on Thursday as
Swedish retailer H&M and French-Italian chipmaker
STMicroelectronics jumped after reporting forecast-beating
results, while hopes of more U.S. stimulus aided global
sentiment.
The pan-European STOXX 600 index .STOXX rose 0.7% by 0707
GMT, with bourses in Paris .FCHI and London .FTSE up over
1%, while German stocks .GDAXI rose 0.3%.
H&M HMb.ST rose 5.6% as it reported a third-quarter profit
above analysts' expectations and said sales continued to recover
in September. The retail index .SXTP rose 1.3% to lead
sectoral gains. STMicroelectronics STM.PA jumped 3.5% after it forecast
2020 sales above previous estimate. After European markets ended the third quarter in a subdued
manner on worries about a resurgence in European COVID-19 cases,
Brexit deal and the United States election, the mood brightened
on Thursday amid signs of progress in a U.S. fiscal bill.
Final readings of September manufacturing activity for the
euro zone and UK are due later in the day, with economists
expecting recovery to remain intact after a coronavirus-induced
hit.
German drugs company Bayer AG BAYGn.DE slumped 12% to the
bottom of STOXX 600 after announcing plans for more than 1.5
billion euros ($1.76 billion) of cost cuts as of 2024 and
revealing impairment charges on its agricultural business.

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