Arizona Tribune - European stock markets climb, oil jumps

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European stock markets climb, oil jumps
European stock markets climb, oil jumps / Photo: KAREN BLEIER - AFP

European stock markets climb, oil jumps

Europe's main stock markets rose solidly Thursday thanks to well-received earnings updates and the prospect of more regional cuts to interest rates.

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Major Asian indices closed mixed after sizeable losses on Wall Street Wednesday, with US Treasury yields climbing on concerns that inflation risked rising again.

Oil prices jumped 1.5 percent as the crude market continued to experience volatile trading.

"Higher oil prices and some good corporate results helped UK stocks to strong gains," noted AJ Bell investment director Russ Mould.

London's benchmark FTSE 100 index features oil giants BP and Shell.

Shares in Barclays, meanwhile, gained 3.3 percent in midday deals after the bank said net profit increased 23 percent in the third quarter compared to one year earlier.

In Paris, shares advanced in luxury goods group Hermes thanks to rising sales and amid hopes of a pickup in demand as China stimulates its economy.

With the US presidential election still seen as a coin toss less than two weeks out, there was plenty of uncertainty on trading floors, though observers said dealers were eyeing a win for Donald Trump and policies such as tax cuts that could stoke inflation again.

That, along with a strong run of US economic data and remarks from Federal Reserve officials backing a cautious approach to easing monetary policy, has seen expectations for rate cuts whittled back.

Traders had previously been confident that the central bank would follow up last month's bumper 50-basis-point cut with another at its November meeting and a smaller one in December.

But those expectations have diminished, as seen with Treasury yields rising.

The situation would appear different in Europe, where analysts are betting on the possibility of bumper rate cuts in the eurozone and Britain.

This after Bank of England governor Andrew Bailey said UK inflation was falling quicker than it had expected, and as eurozone economic data continues to weaken.

Business activity in the single currency bloc ticked lower for the second consecutive month in October, a closely watched survey showed Thursday.

The HCOB Flash Eurozone purchasing managers' index published by S&P Global registered a figure of 49.7 compared to 49.6 in September.

Any reading above 50 indicates growth, while a figure below 50 shows contraction.

The latest PMI data for Britain on Thursday showed its "economy struggled" at the start of the fourth quarter, said Kathleen Brooks, research director at traders XTB.

Eyes will be on Tesla when Wall Street reopens after the electric carmaker reported a jump in profits late Wednesday.

The company, led by Elon Musk, said third-quarter profit accelerated 17 percent to $2.2 billion from a year earlier.

- Key figures around 1045 GMT -

London - FTSE 100: UP 0.6 percent at 8,305.90 points

Paris - CAC 40: UP 0.8 percent at 7,556.00

Frankfurt - DAX: UP 0.7 at 19,504.40

Tokyo - Nikkei 225: UP 0.1 percent at 38,143.29 (close)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 20,489.62 (close)

Shanghai - Composite: DOWN 0.7 percent at 3,280.26 (close)

New York - Dow: DOWN 1.0 percent at 42,514.95 (close)

Euro/dollar: UP at $1.0803 from $1.0787 on Wednesday

Pound/dollar: UP at $1.2972 from $1.2929

Dollar/yen: DOWN at 151.87 yen from 152.65 yen

Euro/pound: DOWN at 83.27 pence from 83.41 pence

Brent North Sea Crude: UP 1.5 percent at $76.10 per barrel

West Texas Intermediate: UP 1.5 percent at $71.86 per barrel

F.Wilson--AT