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UPDATE 1-German earnings boost European stocks; Nokia shares dive

Published 24/10/2019, 09:39
Updated 28/10/2019, 18:09
© Reuters.  UPDATE 1-German earnings boost European stocks; Nokia shares dive

© Reuters. UPDATE 1-German earnings boost European stocks; Nokia shares dive

* Daimler up on higher Mercedes-Benz sales

* German stocks lead gains

* Nokia on track for worst day since 2001

* ECB announcement at 1145 GMT

(Updates after German, French data)

By Lisa Pauline Mattackal and Agamoni Ghosh

Oct 24 (Reuters) - European shares gained on Thursday as

upbeat results from German companies offset a dour profit

forecast from Nokia and a mixed bag of business sentiment

indicators ahead of the European Central Bank's October policy

meeting.

The pan-European stock index .STOXX rose 0.3% by 0815 GMT,

on track to reach its highest level this month with German

stocks .GDAXI driven by robust earnings from Daimler and a

confirmation from chemicals giant BASF of its annual outlook.

"Companies like BASF and Daimler which had reduced earnings

earlier this year today said they aren't cutting their outlook

any further," said Chris Bailey, European strategist at

brokerage Raymond James.

"Even though that is not brilliant what you want to see as

an investor is an end to the downgrades."

Daimler DAIGn.DE jumped 4.7% after higher sales of its

Mercedes-Benz cars boosted operating profit for the

third-quarter, helping the sub-index of auto stocks .SXAP

reach its highest since early May.

BMW BMWG.DE and PSA Group PEUP.PA both gained over 1%,

lifting some of the gloom surrounding the sector after last

week's poor results from Renault RENA.PA and Volvo VOLVb.ST .

Healthcare stocks .SXDP were also higher after AstraZeneca

AZN.L gained 3.2% on a strong set of numbers that spurred

another hike in its product sales forecast.

European markets entered the third quarter earnings season

this month in nervous form, with signs that Germany was heading

into recession weighing on expectations for growth across the

region.

ECB chief Mario Draghi holds his last meeting on Thursday

after eight years at the helm with monetary policy appearing to

have reached its limits for the euro area. His successor

Christine Lagarde is expected to ask member governments for

fiscal support to help energize growth. On a sour note, Nokia NOKIA.HE was on track for its worst

day since 2001, plummeting 21% after cutting its 2019 and 2020

profit outlook as the company faces pressure from rivals in the

5G industry. The telecom maker's report dragged tech stocks .SX8P lower

for a third straight day, and weighed on Helsinki-listed stocks

.OMXHPI , which fell 2%.

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