(Bloomberg) -- European stocks were steady, as upbeat earnings reports from a range of companies provided a boost to some sectors while financials weighed.
The Stoxx Europe 600 Index was largely flat at the close in London, with travel and leisure and consumer product and services leading gains while chemicals and healthcare underperfomed. Unilever Plc advanced after the consumer goods giant reported accelerating sales growth, while Barclays Plc rose to a nine-year high after reporting an increase in trading revenue.
Among other companies reporting, French carmaker Renault SA gained after it confirmed its full-year guidance and Hermes international advanced after the Birkin bag maker’s sales rose. Sweden’s largest bank, SEB AB, declined as it delivered worse-than-expected profit from lending, dragging on the underperforming banking sector.
About 10% of the entire Stoxx 600 index reported today. Other big movers included Abrdn Plc, which slumped after clients pulled money from its equities funds last quarter, while Edenred SE plummeted after the French payment-service provider saw third-quarter revenue miss estimates, saying it faces a hit on Ebitda should a proposal to cap commissions in Italy go ahead.
Third-quarter earnings have been mixed with about 40% of MSCI Europe companies beating estimates so far, while 40% have missed, according to data compiled by Bloomberg Intelligence.
The market has been trading in a tight range this month, with investors assessing a slate of risks including tensions in the Middle East, the resilience of China’s economy, the pace of central bank rate cuts and the upcoming US presidential election.
“We expect a pick-up of volatility in November and it may be a good entry point to revisit sectors that have been left behind in this year’s rally,” said Ricardo Gil, deputy CIO at Trea AM.
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- Lloyds Canters On: The London Rush
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--With assistance from Jan-Patrick Barnert.
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