European stocks ended higher on Thursday as the mood remained positive almost right through the session amid optimism about a partial fiscal stimulus in the U.S.
U.S. President Donald Trump, who said on Tuesday that he has instructed his administration's negotiators to halt discussions with Democrats over a coronavirus relief plan, tweeted later that night that he would support individual stimulus measures, such as aid to airlines and small businesses, following which U.S. stocks staged a splendid rally on Wednesday, setting up the stage for a positive opening in European markets today.
Still, gains were somewhat limited as House Speaker Nancy Pelosi today rejected the idea of a standalone bill for aid carriers without a larger stimulus bill. Worries about continued rise in coronavirus cases in the U.K., France and some other countries in Europe also weighed on stocks.
The pan European Stoxx 600 moved up 0.78%. The U.K.'s FTSE 100 gained 0.53%, Germany's DAX advanced 0.88% and France's CAC 40 climbed 0.61%, while Switzerland's SMI ended 0.81% up.
Among other markets in Europe, Austria, Belgium, Denmark, Greece, Iceland, Ireland, Netherlands, Portugal and Spain closed with sharp to moderate gains.
Czech Republic, Finland, Russia and Sweden ended marginally up, while Poland and Turkey closed weak.
In the UK market, Rolls-Royce Holdings soared nearly 24% and IAG ended more than 10% up. Meggitt, Intermediate Capital Group, Taylor Wimpey, Barratt Developments, Barclays, Royal Dutch Shell, TUI, BP, Informa and Hikma Pharmaceuticals gained 2.5 to 6%.
EasyJet shares gained 2.3% despite early weakness. The airline said it expects to report a group headline loss before tax in the range of 815 million pounds to 845 million pounds for the financial year 2020.
Vodafone, ITV, BT Group, British Land Company and Halma also rose sharply.
Ds Smith, Hargreaves Lansdown, Mondi and Royal Mail ended lower by 3 to 4%.
In France, Technip and Capgemini shares gained about 5.5% and 5.3%, respectively. Atos, BNP Paribas, Dassault Systemes, Societe Generale, Bouygues, Publicis Groupe, Safran and Sanofi gained 1.5 to 2.6%.
In the German market, Lufthansa rallied more than 6.5%. HeidelbergCement, MTU Aero, BASF, Bayer, Infineon Technologies, Fresenius, Thyssenkrupp and Deutsche Bank gained 2 to 4%.
In economic news, UK firms reported further rise in hiring activity in September and job vacancies climbed for the first time since February, the latest KPMG and REC Report on Jobs revealed.
According to the report compiled by IHS Markit, permanent placement grew the most in nearly two years, and temp billings expanded at the quickest rate since the end of 2018. The upturn was driven by the reopening of the economy and the recommencement of projects.
Data from Destatis showed Germany's exports were up 2.4% in August compared to a month earlier. Economists had forecast growth to slow to 1.4% from 4.7% in July.
Meanwhile, the month-on-month increase in imports accelerated to 5.8% from 1.1%. Imports were also forecast to climb 1.4%. As a result, the trade surplus fell to a seasonally adjusted EUR 15.7 billion from EUR 18 billion in July. The expected level was EUR 18.2 billion.
A report from the Bank of France said the French economy rebounded in the third quarter after posting a record contraction due to the lockdown in the second quarter. According to the bank's estimate, gross domestic product expanded 16% sequentially in the third quarter, following a sharp 13.8% decline in the second quarter. The estimate for the third quarter was left unrevised.
Switzerland's jobless rate dropped marginally to a seasonally adjusted 3.3% in September, data from the State Secretariat for Economic Affairs, or SECO, showed. The rate was 3.4% a month earlier.
On an unadjusted basis, the unemployment rate slid to 3.2% in September from 3.3% in the previous month. Economists had forecast the rate to remain at 3.3%.
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