Europe open: Shares tick higher despite new Covid lockdowns

European stocks pushed ahead on Thursday after Wednesday's sell-off as investors weighed new lockdowns in France and Germany along with a European Central Bank rate decision, heavyweight US corporate earnings and GDP third quarter figures.

After a sharp fall on Wednesday, the pan-European Stoxx 600 crept up 0.3%. The German DAX rose 0.28%, while the French CAC 40 up 0.4% and the UK FTSE 100 up 0.3%.

US stock futures were up ahead of a big day in corporate earnings with Google owner Alphabet, Amazon, Apple and Facebook all set to report. US third quarter GDP is also scheduled for release.

The European Central Bank was set to meet on Thursday, with economists expecting it to indicate it is open to more stimulus measures, particularly in the face of a potential double-dip recession.

In Europe, France and Germany on Wednesday both announced new one-month lockdowns to fight the second wave of the Covid-19 pandemic. The UK government continued to dither, even as infection rates soared and deaths were on the increase.

“It remains to be seen if, now that Germany and France have re-imposed national lockdowns, the markets most recent bout of covid-19 panic will be set aside in favour of focusing on Tuesday’s presidential election. Or whether a virus hotspot like the UK still has the capacity to cause widespread alarm, especially amidst the growing calls for a nationwide ‘circuit breaker’,” said Spreadex analyst Connor Campbell.

“It will also be interesting to see how much of an impact this afternoon’s third quarter GDP data out of the US has on sentiment. Analysts are forecasting growth of 32% at the annualised rate, a huge swing from the 31.4% contraction suffered in Q2.”

In equity news, Royal Dutch Shell jumped 4% as the oil giant’s adjusted earnings of $955m came in well ahead of the $146m forecasts.

Nokia shares slumped 13% as the telecom equipment maker cut its profit forecast and introduced a new structure.

BT Group climbed 6% as the UK telecom lifted the low end of its profit forecast and suggested a return to dividends.

Lloyds Banking Group added 2.5% after the UK's largest domestic lender posted a forecast-beating quarterly profit, boosted by a mortgage lending boom.

Standard Chartered was weaker even after it posted a smaller-than-expected fall in third-quarter profit and lowered bad loan guidance as it considered a return to dividends at the full year stage.