The
pan-European STOXX 600 index rose 0.8%, with miners up 2.1% and
technology stocks gaining for a second day.
European semiconductor companies, including ASML, AMS and BE
Semiconductor, were among the top gainers in the sector after
Taiwan chip giant TSMC posted a 13.8% jump in third-quarter
profit on the back of booming demand for semiconductors.
A debate over the transitory nature of inflation continued as
China's factory gate inflation rose in September to a record
high on soaring commodity prices.
Investors are now awaiting U.S. producer prices data later in
the day, with the reading expected to show a surge in prices.
Supply chain disruptions, a global energy crisis and labour
shortages have fuelled concerns about higher inflation driving
central banks to raise interest rates sooner at a time when
policymakers are planning a gradual exit from the pandemic-era
stimulus.
"We're seeing a successive series of supply shocks," said David
Page, head of macro research at AXA Investment Managers.
"It's increased the period that we think that inflation is going
to be elevated for, it also increases some of the risks that it
could become more persistent. But for now, there aren't signs
that that's the case."
While inflation concerns linger, optimism around the earnings
season have soothed stock market volatility in the recent days,
bringing the STOXX 600 about 3% below its all-time highs.
Analysts expect third-quarter profit for STOXX 600 companies to
climb 46.7% from a year ago, according to Refinitiv IBES data,
after lifting their forecasts heading into the earnings season
with energy companies enjoying the biggest revisions.
Among individual stocks, French advertising group Publicis
gained 3.5% after it raised its outlook for 2021 as a global
shift towards digital media and e-commence helped its
third-quarter organic growth exceed market expectations. British
rival WPP rose 0.6%.
Dutch navigation and digital mapping company TomTom gained 0.5%
after sharp losses earlier in the session on warning that supply
chain problems in the auto sector could last until the first
half of next year.
German software firm SAP gained 1%, and was the biggest boost to
the tech sector, after posting a near 4% jump in the previous
session following a strong quarterly report.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj
Kalluvila and Amy Caren Daniel)
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