European Shares Rise On China Policy Easing HopesNovember 18, 2021
European stocks eked out modest gains in cautious trade Thursday amid hopes that Beijing will take steps to ease the cash crunch for embattled developers.
Investors heaved a sigh of relief after cash-strapped developer China Evergrande Group averted a destabilizing default at the last minute for the third time in the past month.
The pan European Stoxx 600 was up 0.2 percent at 484.43 after gaining 0.2 percent in the previous session.
The German DAX edged up 0.2 percent, France’s CAC 40 index rose 0.3 percent and the U.K.’s FTSE 100 was up 0.4 percent.
British retailer Burberry Group slumped 6.6 percent after maintaining its medium-term guidance for high single-digit top line growth.
Aviva rose about 1 percent. The insurer said it is on track to return at least 4 billion pounds ($5.41 billion) to shareholders and meet cost saving targets.
3i Group jumped 3 percent after the private equity company posted a rise in first-half pre-tax operating profits.
Johnson Matthey shares plunged more than 16 percent. The chemicals company said it would exit its battery materials business due to crushing competition. Also, its current boss is stepping down.
Engie SA shares rose over 2 percent. The French natural gas and electricity supplier and Crédit Agricole Assurances announced an agreement to acquire a 97.33 percent stake of Eolia Renovables from Canadian institutional investment manager Alberta Investment Management Corp.
German industrial services giant Bilfinger rose about 1 percent after appointing its new CEO.
SGL Carbon surged 2.6 percent as it reported improved earnings in the 9-month period on higher sales.
Delivery Hero advanced 2.2 percent. The online food-delivery service reported that its third-quarter total segment revenues climbed 89 percent.
Sika soared 8.7 percent after it agreed to buy German rival MBCC Group for 5.5 billion francs ($6 billion).
Steelmaker Arcelor Mittal gained 2.1 percent despite reporting slightly lower than expected third-quarter earnings.
The British pound eased after official data showed the U.K. economy expanded at a slower pace in the third quarter.
Gross domestic product grew 1.3 percent sequentially in the third quarter, but weaker than the 5.5 percent expansion seen in the previous quarter. Nonetheless, this was the second consecutive growth.
The level of GDP was 2.1 percent below where it was before the coronavirus pandemic at the end of 2019. On a monthly basis, GDP growth improved to 0.6 percent from revised 0.2 percent in August.
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