European shares edge higher after strong company earnings

European shares rose on Wednesday, supported by gains in healthcare stocks and strong earnings reports, while investors assessed economic data and comments from central bankers in a bid to discern the European Central Bank’s future path on interest rates.

Data showed euro zone retail sales fell roughly in line with expectations in September, while another survey showed euro zone consumers have raised their inflation expectations over the next 12 months to 4 per cent.

DUBLIN

The Iseq Overall Index closed 0.4 per cent higher in line with the positive trend across Europe as Ryanair extended its recent winning streak. The airline rose 1.7 per cent to close at €16.66 as investors continued to respond positively to its Monday earnings statement.

Glanbia and Flutter Entertainment were also among the climbers, with the food group rising 1.2 per cent to €15.36 and the owner of Paddy Power rising 0.9 per cent to €157.55. The banks were also in positive territory, with AIB edging up 0.4 per cent to €4.14 and Bank of Ireland finishing 0.3 per cent higher at €8.47.

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Packaging group Smurfit Kappa declined 1.3 per cent to €31.82, while insulation-maker Kingspan shed 1.1 per cent to close at €64.92.

LONDON

The FTSE 100 closed down 0.1 per cent, though Marks & Spencer hit its highest levels in more than a year-and-a-half following upbeat profit, while mid-cap stock ITV fell after a disappointing forecast.

Marks & Spencer jumped 8.4 per cent after it reported a better-than-expected profit in the first half and reinstated its dividend after four years, in a move viewed as a statement of confidence about the outlook for the retailer.

The mid-cap FTSE 250 rose 0.5 per cent but broadcaster ITV plunged 6 per cent — its biggest one-day drop in 10 months — after it said lower demand for its content from free-to-air broadcasters would impact its studio business in the fourth quarter.

Luxury carmaker Aston Martin ended 2 per cent higher after the Warwickshire-based company said Saudi Arabia’s Public Investment Fund (PIF) had raised its stake by 2.6 per cent, making the sovereign fund its second-largest shareholder.

Rolls-Royce surged 2.8 per cent after brokerage Morgan Stanley raised its rating on the aircraft engine maker to “overweight” — the equivalent of a “buy.”

EUROPE

The pan-European Stoxx 600 closed 0.3 per cent higher. In Frankfurt, the Dax added 0.5 per cent, while the Cac 40 in Paris rose 0.7 per cent. Portugal’s PSI Index inched 0.1 per cent higher after Tuesday’s 2.5 per cent slide following the unexpected resignation of prime minister António Costa.

Danish wind turbine maker Vestas jumped 9.8 per cent following better-than-expected third-quarter operating profits and revenue.

Germany’s Continental said it expects a strong fourth quarter for its automotive business and higher growth in the global auto market this year than previously forecast, lifting shares of the auto parts manufacturer 4.1 per cent higher.

Commerzbank rose 0.7 per cent as net profit more than tripled in the third quarter, better than expected.

NEW YORK

Wall Street’s main indexes slipped in the first hours of trading as investors parsed earnings reports and comments from Federal Reserve officials for clues on how long the US central bank will keep interest rates high and eventually start cutting it.

Warner Bros Discovery slumped 15.7 per cent after it said Hollywood strikes and a weak advertising market could hurt next year’s earnings. The dour outlook also dragged shares of Paramount Global down 6.7 per cent.

Take-Two Interactive Software rose 6.7 per cent after the company said it would release a trailer early next month for the latest instalment in its best-selling Grand Theft Auto video game franchise, while electric vehicle maker Lucid Group fell 7.9 per cent after trimming its production forecast. — Additional reporting: Reuters