European shares move higher amid bargain hunting

European shares are higher Wednesday, after five straight days of losses,although tech and banking stock weakness is limiting those gains.

European shares move higher amid bargain hunting

European shares are higher Wednesday, after five straight days of losses. Buyers appear to be showing interest at a lower level, despite continued concerns over the Italian budget, Brexit and diplomatic tensions over the murder of US journalist, Jamal Khashoggi.

By 1510 BST, the EUROSTOXX 600 was up 0.65%, while the EUROSTOXX 50 had gained 0.70%. The German DAX rose 0.25%, the French CAC was 0.85% higher and the Spanish IBEX was 0.37% in the green.

Gains return amid bargain hunting

Various worries have weighed on markets in recent days, helping to push prices lower. That period of falls appears to have encouraged some bargain hunting, Wednesday.

Leading the gainers was luxury brand business, Kering. Kering shares gained 8.52% to hit €383.20, after impressing with its third quarter earnings update, Tuesday. Strong sales at Gucci helped underpin total sales growth of almost 28% compared with a year earlier.

However, broader gains remained tentative as investors exercised cautious decision making.

Weakness lingers

While the broader European indices made gains Wednesday, there were still notable stock fallers working to limit those rises.

The banking sector weighed, following Deutsche Bank’s latest third quarter earnings report. The German bank said that profit growth fell again, although third quarter revenues were only 9% lower than a year earlier. In addition, CEO Christian Sewing was upbeat over the company’s outlook.

Deutsche Bank shares sank 3.48% to €8.99, recovering a little from a steeper drop, earlier in the trading day.

Tech stocks also remained in the doldrums, with investors finding little cheer in the STMicro Q3 update, despite it’s positive outlook. STMicro shares slid 7.50% to €12.52.

European economic data was an additional weight, limiting broader stock gains. Data firm Markit’s preliminary composite eurozone PMI slid to a 25-month low of 52.7 in October, from September’s 54.1. The decline came as a previously export-led economic slowdown in the region began to hit the area’s service sector, too.

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