Europe open: Luxury goods stocks get a lift from LVMH results
European stocks rebounded on Friday morning after a mauling on Thursday, driven by upbeat corporate earnings in the luxury sector.
The pan-European Stoxx 600 index was up 0.67% with all major bourses higher. US futures were creeping into positive territory.
Investors were still keeping close watch on the rising number of coronavirus cases across the continent and Britain’s response to an EU ultimatum on a post-Brexit trade deal. Also due out later in the day are US retail sales, industrial production and a consumer sentiment survey.
UK Prime Minister Boris Johnson was due to make a statement on Friday on whether the Britain would continue Brexit talks with the EU as a summit of the bloc's 27 leaders was due to conclude later.
In corporate news, shares in high-end retailers were on the march, led by LVMH Moet Hennessey, up 7% as the luxury goods outfit reported strong growth at its Louis Vuitton and Dior brands.
Hermès International, Burberry and Christian Dior all rose on the news.
Daimler shares were higher as the German auto maker reported third-quarter earnings above market consensus, and guided for a strong final three months.
Hedge fund Man Group gained after it reported a 4% rise in third-quarter funds under management partly thanks to "robust" net inflows, although it also struck a note of caution about the outlook.
Outsourcer Serco surged after upgrading its 2020 guidance thanks to strong revenue growth in the third quarter and good cost control.
On the downside, pub chain JD Wetherspoon slumped after it swung to an annual loss as it felt the full impact of the coronavirus lockdown and said the government’s latest set of curbs had led to a 15% fall in like-for-like sales in the first 11 weeks of the current fiscal year.
The company reported a pre-tax loss of £34m compared with £102m profit a year ago. Revenue fell by a third to £1.26bn and the final dividend was scrapped.