Positive Earnings Boost European Stocks
Reuters — On Thursday, European stock markets, including the German DAX and the broader pan-European Stoxx 600, saw a rise of 0.8%. This increase was driven by encouraging earnings reports.
AstraZeneca, for instance, raised its yearly earnings forecast and surpassed expectations for the third quarter. Deutsche Telekom AG also increased its 2023 guidance following robust third-quarter profits, and Henkel marginally upgraded its annual outlook. WH Smith and ArcelorMittal outperformed profit forecasts, but Merck predicted full-year operating earnings that fell short of targets. Adyen’s shares skyrocketed by 37% in a significant individual movement after the company set new, market-approved targets.
These positive earnings results and the subsequent rise in European stocks are generally good for the economy. They indicate a healthy financial market, which can boost investor confidence and stimulate economic growth.