European stock markets hit a two-year high Wednesday, following record closes achieved in the US and Asia, overnight.
Indices were supported by positive momentum and also boosted by some positive earnings news, along with upbeat PMI data. The gains point to a fifth straight day of gains for European indices, as investors also gain confidence from upcoming UK and US rate hikes.
The opening strength also shows the terror attack overnight in New York, failed to deter investors.
Shortly before midday, the EUROSTOXX 600 was up 0.6%, while the EUROSTOXX 50 was 0.8% higher. The German DAX gained 1.6%, the French CAC and Spanish IBEX were both 0.4% higher.
Supportive company news and data
German energy company E.ON, Infineon and TechnipFMC were all trading strongly with plenty of investor interest.
Car makers Peugeot and Volkswagen gained 1.8% and 2.7% respectively. Those gains came as UK manufacturing PMI data proved upbeat. Meanwhile, Finnish business, Nokian Tyres, was up some 0.4%, following better-than-expected third-quarter results.
While data and some company news proved supportive, a few stocks lost a lot of ground.
UK retailer Next was hit by a volatile trading performance, falling 7.5%. Danish drug maker Novo Nordisk, lost 0.9% as its Q3 earnings report warned new US legislation could affect business.
In addition, French bank, BNP Paribas extended it’s Tuesday losses and was trading some 0.7% lower.
Meanwhile, the UK manufacturing PMI rose to 56.3 in October, as new orders, output and employment all moved higher.
New York Attack
Investors showed the current bull run – supported by a positive economic backdrop, upcoming rate hikes and plenty of upbeat company news – wouldn’t be deterred by the latest terror attack.
In the past, city attacks have had an impact on investor sentiment. However, it appears Wednesday that they are looking past yet another attack in a major city. Instead, investors continue to focus on fundamentals, which is underpinning positive sentiment.
Analysts are also anticipating a strong European session could help spur further highs in the US, Wednesday, too.