Europe's STOXX 600 rises in broad-based advance on earnings impetus (updated)

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24/10/2024 10:23

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        * 
      Travel and leisure tops sectoral gainers
    

        * 
      Hermes underpins mood in luxury stocks
    

        * 
      Renault rises after Q3 sales beat
    

        * 
      Edenred plummets on slight Q3 miss
    

  
 (Updated at 0850 GMT)
    By Paolo Laudani and Ankika Biswas
       Oct 24 (Reuters) - European shares rose on Thursday, as
a raft of upbeat earnings from the likes of consumer goods major
Unilever and online gaming group Evolution improved mood, while
investors assessed stalling manufacturing data for the ECB's
rate-cut outlook.
    The pan-European STOXX 600 index  .STOXX  was up 0.6% as of
0850 GMT, in a largely broad-based market advance following a
three-day losing streak. 
    Travel and leisure  .SXTP  led sectoral gains with a 3% jump
to a near seven-month high, as Sweden's Evolution  EVOG.ST 
soared 13% after reporting third-quarter earnings in line with
forecast despite ongoing issues with its Georgian workforce.
    The automobiles index  .SXAP  also climbed 2%, boosted by a
7.2% jump in French carmaker Renault  RENA.PA  following an
unexpected rise in its quarterly revenue.
    Unilever  ULVR.L  rose 4% after slightly
better-than-expected underlying quarterly sales and its biggest
gain in sales volumes in three-and a-half-years.
    The personal and household goods index  .SXQP  rose nearly
2%.
    Anglo American  AAL.L  gained 4% after the miner maintained
its full-year copper production forecast despite a weak
third-quarter.
    Meanwhile, a survey showed euro zone business activity
stalled again this month, remaining in contractionary territory
as demand from both home and abroad fell. 
    "While the composite PMI signals a contraction, it isn't
really one, so it kind of overstates the weakness in the
economy," said Stefan Koopman, senior market economist at
Rabobank.
    "Perhaps (the economy is) not doing that bad as the PMI
suggests, but it is setting the market up for a 50-basis-point
cut from the ECB in December."
    European Central Bank President Christine Lagarde on
Wednesday had urged some caution when deciding on further rate
cuts, but sources previously told Reuters that policymakers were
already beginning to debate whether rates have to go below
neutral to stimulate the economy.
    Further on the earnings front, Mycronic  MYCR.ST  was the
top STOXX 600 gainer, after the Swedish solutions maker for
electronics manufacturing jumped 13% following
better-than-expected quarterly earnings.
    Sodexo rose 5.4% after the French service provider's
"reassuring" results.
    Birkin bag maker Hermes  HRMS.PA  rose 2% after reporting a
hefty rise in third-quarter sales, which also likely aided
Kering's  PRTP.PA  2% gain in the face of the Gucci-owner's 
2024 operating income warning.
    On the other hand, the French vouchers group Edenred
 EDEN.PA  slumped 14% to the bottom of STOXX 600 after missing
revenue expectations.
    Hemnet  HEM.ST  fell 9% after the Swedish property platform
operator reported third-quarter earnings below estimates.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Eurozone, German and French final PMIs    https://reut.rs/3UlyWgM
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 (Reporting by Paolo Laudani in Gdansk and Ankika Biswas in
Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)
 ((ankika.biswas@thomsonreuters.com,
paolo.laudani@thomsonreuters.com))