European shares are higher Thursday, as earnings reports showed positive results across a variety of industries. Meanwhile, reports that the EU and UK have made a tentative agreement over financial services sector access and data, sharing also helped buoy sentiment.
By 1545 BST, the EUROSTOXX 600 was 0.46% higher, while the EUROSTOXX 50 gained 0.37%. Regional bourses were also broadly positive. The German DAX was 0.37% in the green, the French CAC fell 0.05% and the Spanish IBEX rose 0.68%.
Potential Brexit breakthrough
Sentiment brightened Thursday, following a report in The Times. that the UK and European Union had reached a loose agreement that will allow UK-based financial services firms continued access to the EU. Data sharing practices are expected to remain intact, too.
However, despite reports suggesting a three-week timescale for a final deal on this element of Brexit, the UK Government was less sanguine.
A source told the BBC that the positive take on the talks was “a rather rose-tinted interpretation of where we have got to”. The Government source added: “People shouldn't get ahead of themselves.”
In an official statement, a UK Government spokesperson said: “While we continue to make good progress agreeing new arrangements for financial services, negotiations are ongoing and nothing is agreed until everything is agreed.”
Aside from the uncertainty over that potential Brexit breakthrough, some earnings news also proved positive for European markets.
ASM International shares climbed as the Dutch chipmaker reported better-than-expected third quarter earnings, included the highest ever quarterly level of orders. It’s outlook for the fourth quarter and full-year 2018 was upbeat, too. ASM International shares rose 11.42% to €42.33.
However, it wasn’t all upward momentum for stocks. Credit Suisse shares slipped, as its 74% earnings increase was still below expectations. The Swiss bank’s CEO Tidjane Thiam, meanwhile, said it turned out a “good” Q3 performance, against a “challenging” backdrop.