Today, European shares experienced an upturn, with the STOXX 600 closing 0.3% higher, following a week of declines. This rebound was largely driven by robust earnings reports and an uptick in healthcare stocks. According to data from LSEG, 55.3% of STOXX 600 companies surpassed earnings expectations, contributing to the market's recovery.
Among the companies that reported better-than-expected results or forecasts were Vestas, Continental, Commerzbank (ETR:CBKG), Ambu, and Genmab (NASDAQ:GMAB), leading to increases in their respective stock prices. British retailer Marks & Spencer (OTC:MAKSY) also saw a surge in shares due to a significant rise in first-half profit.
However, not all sectors shared in the rally. Swiss Life Holding AG and Ahold Delhaize experienced share price decreases due to market concerns over their outlooks. Earlier today, Ahold Delhaize announced a cut in its 2023 earnings forecast due to issues with U.S. margins, triggering a 5.9% decrease in its stock. Similarly, Swiss Life Holding AG led a decline in insurance stocks as it reported weak results.
In other news, Euro zone retail sales for September met expectations and consumers' inflation expectations for the next year rose to 4%. Pantheon Macroeconomics' Melanie Debono forecasts an end to the squeeze on real incomes in Q4 due to falling inflation and steady wage growth.
Central bankers are putting more efforts into curbing inflationary pressures. U.S. Federal Reserve Governor Michelle Bowman hinted at potential rate hikes, aligning with the financial world's anticipation for rate forecasts from Jerome Powell and Christine Lagarde.
On another note, E.ON expects a significant hit to its Q4 profit while Portugal's PSI Index saw a slight increase following the resignation of Prime Minister Antonio Costa.
Earlier today, the STOXX 600 reached a one-week low, continuing a three-day fall. The market was particularly impacted by insurance stocks, with Swiss Life Holding AG leading the decline due to weak results. ABN Amro's shares also dropped by 7.5% following disappointing Q3 net interest income. Despite the overall market downturn, Vestas' shares rose by 6.8% due to robust Q3 profits.
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