European equities extended gains Monday as investors digested more economic news from China and the latest earnings from Commerzbank and HSBC.
The STOXX Europe 600 index continued to trade up 0.5 percent, after a positive U.S. open.
Investors in Europe were focused on HSBC’s third quarter earnings which showed that pre-tax profit rose to $6.1 billion, up 32 percent from the same period a year ago and higher than expectations of analysts polled by Reuters. London-listed shares of the bank were trading 1 percent lower Monday.
Meanwhile, shares of Commerzbank were trading over 7.5 percent higher after the bank reported better-than expected third quarter earnings.
Commerzbank beat analysts’ expectations for pretax profit as the lender’s retail bank thrived, provisions for bad loans decreased and its run-down portfolio of unwanted assets broke even.
Elsewhere, budget airline Ryanair saw shares jump 3.3 percent Monday after reporting that it expects to post annual profits at the upper end of its forecast range as fuller-than-expected planes lift passenger numbers.
Shares in Swedish appliance maker Electrolux sank to the bottom of the STOXX 600, down 5.9 percent, after the U.S. Justice Department rejected the firm’s offer to settle a dispute over whether it would be allowed to buy General Electric’s appliance business.
Greek banks rise
Greek bank shares got a boost Monday — Alphabank and Eurobank both up 29 percent — while the Athens stock exchange was outperforming its fellow indexes, up over 2 percent.
This came after the European Central Bank’s stress tests of four Greek banks — Alpha Bank, Eurobank, Piraeus Bank and National Bank of Greece — found that they have a collective capital shortfall of 14.4 billion euros, less than the 25 billion euro maximum earmarked for bank recapitalization as part of the country’s latest bailout program, Reuters reported.
China data
In Asia overnight, stocks mostly slipped into the red on Monday, as investors digested a private survey which showed China’s mammoth manufacturing sector remaining in a tough spot, though the pace of decline in factory activity slowed in October.
The preliminary Caixin China manufacturing purchasing managers’ index (PMI) rose to 48.3 in October, above the 47.5 forecast in a Reuters poll.
Despite taking a tumble on Monday following China’s weak economic data, oil prices shook off concerns over demand and traded roughly flat. Brent crude was trading roughly 8 cents down at $49.47, while U.S. crude stood around $46.64. Oil stocks, including Tullow Oil, Petrofac and Rio Tinto however remained in negative territory.
Source: CNBC
