Relief bounce for European shares as earnings reassure
November 1, 2018
European shares rallied on Wednesday as a tumultuous October drew to a close and strong results from L’Oreal, Sanofi and banks Standard Chartered and Santander soothed investors’ nerves.
The pan-European STOXX 600 closed up 1.74 percent with France's CAC 40 .FCHI jumping 2.3 percent.
Despite its gains, the STOXX 600 posted its worst month since January 2016 after global equity markets reeled from sudden sell-offs and a pick-up in volatility this month.
The euro zone stocks index .STOXXE had its worst monthly performance since August 2015.
Investors were licking their wounds after a testing October for global stock markets which saw U.S. stocks sell off sharply, joining in the already bearish trend of other developed markets.
L’Oreal (OREP.PA) shares jumped 6.7 percent after sales growth at the company, whose brands include Maybelline, picked up pace in the third quarter, driven by booming demand in Asia.
Shares in French pharmaceuticals giant Sanofi (SASY.PA) rose 6.7 percent after it confirmed its return to growth with higher-than-expected third-quarter profits and raised its 2018 profit target for the second time this year.
Banks Santander (SAN.MC) and Standard Chartered (STAN.L) rose 2.9 percent and 3.1 percent respectively after both lenders reported better results, helping boost sentiment in the battered banks sector.
Outside of earnings, the market was lifted by oil and gas stocks .SXEP as crude prices jumped, and tech stocks which have been among the worst hit by this month’s slide.