(Bloomberg) -- European stocks rose to the highest in more than three weeks, with chemicals companies lifted by a report of a German energy price deal and Paypal rival Adyen NV soaring after offering new growth targets.  

The Stoxx 600 was up 0.8% by the close, it’s highest since Oct. 17. Chemicals stocks BASF SE, Wacker Chemie AG and Lanxess AG jumped after a Handelsblatt report on Germany’s deal for an electricity price support package. Industrial goods also outperformed, while travel and leisure shares declined the most. 

Adyen was the highlight of what was the last day of the European earnings season. Shares soared after it reassured investors with a more moderate growth outlook following a record stock-price plunge in the summer. Among other individual movers, gambling company Flutter Entertainment Plc slumped after its forecast for US profits missed estimates, while AstraZeneca Plc gained after it raised its profit outlook for the year and clinched a deal to develop a diabetes and obesity drug.

European shares are recovering in November after declining for three straight months, as dovish signals from the Federal Reserve led to a pullback in US bond yields. Still, the fuel that powered last week’s impressive moves has burned out for the moment, with investors still cautious around the economic outlook and war in the Middle East.

“After the bounce last week, markets continue to look for direction and a trigger to rally further,” said Liberum strategist Joachim Klement. “With the earnings season almost over, we do not see many company-specific triggers ahead. And on the macro front things will only get lively next week.”

Investors are waiting to hear speeches by European Central Bank President Christine Lagarde and Federal Reserve Chair Jerome Powell to see if they offer any direction on the trajectory of interest rates. A rise in US unemployment benefits claims hinted the Fed has room to hold off further rate rises.

European companies are on track to post an 11.5% decline in third-quarter earnings, the biggest slump since the same period of 2020, according to data compiled by Bloomberg Intelligence.

 

SECTORS IN FOCUS:

  • Tech stocks as SoftBank Group falls after Arm Holdings gave a disappointing sales forecast and Coupang’s earnings missed estimates.
  • Game makers and retail electronics stocks after Sony Group Corp. raised its full-year outlook for sales and profit as electronics and media spending stabilize and a weaker yen bolsters its global numbers.
  • Payment stocks after Adyen reported net revenue for the third quarter of EU413.6 million and gave an outlook with more moderate growth targets.
  • Steel makers after ArcelorMittal SA’s third-quarter profit fell as steel prices declined in key markets due to weaker demand

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  • US Stock Futures Fall; Assertio Holdings, Cardlytics Fall
  • M&S Restores Dividend as Overhaul Pays Off: The London Rush

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--With assistance from Jan-Patrick Barnert.

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