European shares are higher Wednesday, boosted by some positive third quarter earnings reports from companies across the region. Two French firms, L’Oréal and Sanofi shares, were among the gainers after they both reported better-than-expected Q3 earnings updates, earlier in the day.
However, the brighter tone to European markets won’t be enough to stop the region posting its worst monthly performance in almost two years.
By 1310 BST, the EUROSTOXX 600 was 1.59% higher, while the EUROSTOXX 50 had gained 1.55%. Regional bourses were also upbeat. The German DAX rose 1.25%, the French CAC was 2.10% in the green and the Spanish IBEX was up 1.10%.
Positive Q3 European earnings
Some better-than-expected third quarter earnings updates earlier Wednesday, are helping to lift investor sentiment.
French cosmetics business, L’Oréal reported strong sales growth between July and September this year, boosted by still high demand for its luxury brands from Chinese consumers. And, L’Oréal’s CEO said that currently, the business isn’t anticipating a slowdown from China, despite the ongoing trade disagreement between it and the US.
L’Oréal shares rose 6.87% to trade at €199.20.
Another French firm, drug maker Sanofi, also posted market expectations beating results Wednesday. The pharma company returned to growth, as it had promised it would, lifted by its vaccines and rare diseases drug sales. Sanofi also raised its full year outlook.
Sanofi shares gained 4.58% to €79.03.
Other stock movers
While European indices are still set for their worst monthly performance since January 2016, it appeared that wasn’t stopping investors from making more bets on company’s who delivered positive results.
Banco Santander shares are 3.05% higher at €4.23 after sharing its third quarter results. Meanwhile, Standard Chartered shares are also in the green, following its latest update.
There were, however, some losers, Wednesday, including Finnish tyre firm, Nokian shares. They slumped 9.52% after the company cut its profit outlook.