Europe close: Stocks jump with miners leading the way higher
European stocks extended their gains on Thursday as miners led the way and investors put aside worries over inflationary pressures and supply-chain issues.
The pan-European Stoxx 600 index rose 1.20% in early deals to reach 465.92. China’s September PPI moved to its highest level in more than two decades at 10.7% driven by soaring commodity prices as CPI came in at 0.7% year on year from 0.80%, while month-on-month inflation fell to 0.0%, below forecasts of 0.30%.
Germany's Dax rose by 1.40% to 15,462.72 alongside, with Spain's Ibex 35 a laggard byt up by 0.49% to 8,925.0.
"Equity markets appear to have shaken off their caution of recent weeks and are moving higher in unison this morning. Yesterday’s strong US CPI print and this morning’s robust Chinese PPI figure have not dented investor enthusiasm for stocks, after US earnings season got off to a good start from JPMorgan," said IG market analyst Chris Beauchamp.
"The earnings call provided plenty of reasons to be cheerful, with the bank noting that the overall US recovery was intact and credit demand was still strong. LVMH’s numbers this week built on this theme, and TSMC’s figures overnight reinforced the view of a global economy that is still moving in the right direction, albeit at a slower place."
"Having dropped back in an orderly fashion into earnings season, it seems stock markets have now reached a level at which investors are once again happy about buying the dip, hence the broad recovery in indices this morning."
On that note, US banking heavyweights Citi, Morgan Stanley and Wells Fargo all posted better-than-expected quarterly profits on Thursday.
Miners gained on the back of higher precious metals prices with Antofagasta, Anglo American, Rio Tinto and Glencore all higher.
In equity news, THG shares rebounded from heavy falls over the last two days. The company, formerly known as The Hut Group this week said it did not know why investors had been dumping the stock.
European semiconductor companies including ASML and Nordic Semiconductor rose after Taiwan chip giant TSMC posted a 13.8% jump in third-quarter profit on the back of booming demand for its products amid a global shortage.
UK recruiter Hays shares rose as the company posted a rise in first-quarter net fees on Thursday, highlighting good growth in all regions.
French advertising group Publicis was up after it raised its 2021 outlook as a global shift towards digital media and e-commence helped its third-quarter organic growth exceed market expectations.
Dutch navigation and digital mapping company TomTom reversed early ship falls to fiish up by 4.21%, despite warning that supply chain problems could last until the first half of next year.