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Oct. 9, 2020, 9:11 a.m. EDT

European stocks rise as American stimulus hopes stay alive

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By Barbara Kollmeyer

European equities traded higher on Friday, as investors kept hopes alive for an American stimulus deal, at the end of a positive week for markets.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP -1.64% rose 0.4% and is up 1.5% for the week, with one more session to go. The German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.67% was flat, while the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -1.39% rose 0.5%, and the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -2.53% gained 0.8%.

U.S. stock futures /zigman2/quotes/208225921/composite SP +0.33% /zigman2/quotes/210598365/realtime COMP +0.56% rose across the board, following on from Thursday’s gains , on fading worries over a contested election outcome and hopes for over a stimulus package, even if it doesn’t arrive until after that battle for the White House.

President Donald Trump said on Thursday that stimulus talks with Democrats have turned productive , following his decision just days earlier to call them off. Hours later, Speaker of the House Nancy Pelosi said she still wanted a big deal .

“EU stocks will continue to be fuelled by U.S. stimulus hopes and expectations of a ‘blue wave’ that is currently viewed as a stimulus friendly outcome at the November U.S. election,” said Stephen Innes, chief global market strategist at AxiCorp. “The recent rise in COVID-19 cases in Europe/ and tighter restrictions continued to generate lots of headlines but not much market reaction.”

Elsewhere, a private gauge of China’s services-sector activity showed faster-than-expected growth in September. Mining shares, sensitive to news about China, a big consumer of natural resources, were higher. Shares of Anglo American UK:AAL rose nearly 5% and BHP /zigman2/quotes/203323256/delayed UK:BHP -3.43% gained 2.3%.

Economic news was less positive for the U.K., where the economy grew just 2.1% in August , disappointing forecasts for growth of 4.6%, and the slowest monthly gain since the initial coronavirus lockdowns. France reported a slowing pace of industrial production in August.

Rising oil prices were lifting shares of heavily-weighted oil companies. Oil prices finished higher on Thursday as Hurricane Delta forced the shut-in of more than 90% of crude output in the Gulf of Mexico. Crude prices were steady on Friday.

Shares of Total /zigman2/quotes/201824152/composite TOT -2.95% , Royal Dutch Shell /zigman2/quotes/201538663/delayed NL:RDSA -3.32% , and BP /zigman2/quotes/202286639/delayed UK:BP -4.20% all rose more than 1%.

European semiconductor-related stocks rose after shares of NXP Semiconductors /zigman2/quotes/202999625/composite NXPI +2.26% rallied late in the U.S. on Thursday, due to a higher outlook . And Advanced Micro Devices /zigman2/quotes/208144392/composite AMD +2.54% is in advanced talks to buy rival chip maker Xilinx in a deal that could be worth more than $30 billion, The Wall Street Journal reported , citing people familiar with the matter.

Shares of Infineon Technologies /zigman2/quotes/203152288/delayed XE:IFX +2.48% and ASM International gained 3% each, and those for Dialog Semiconductor /zigman2/quotes/202268164/delayed XE:DLG -0.03% rose 1.2%, and ASML Holding /zigman2/quotes/210293876/composite ASML +1.31% rose 1.7%.

Shares of Rolls-Royce Holdings /zigman2/quotes/203646520/delayed UK:RR -3.88% were again rising, up 13%. Shares have gained 95% this week, but remain 67% lower year to date.

The London Stock Exchange has agreed to sell its entire shareholdering in the parent company of Borsa Italia to Euronext /zigman2/quotes/208368645/delayed FR:ENX -1.05% in a deal valued at €4.33 billion ($5.09 billion) . LSE shares rose 0.8%, while Euronext stock rose 0.9%.

On the downside, shares of BASF /zigman2/quotes/203188900/delayed IT:BASF -0.56% fell more than 2%, after the German chemicals giant warned on Friday of a big write-down due to declining demand in the automotive and aviation industries

BASF said it will lose €2.12 billion in the third quarter , mostly due to a €2.8 billion write-down.

/zigman2/quotes/210599654/delayed
XX : STOXX
404.99
-6.74 -1.64%
Volume: 0.00
Feb. 26, 2021 11:03p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,786.29
-93.04 -0.67%
Volume: 104,069
Feb. 26, 2021 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,703.22
-80.67 -1.39%
Volume: 0.00
Feb. 26, 2021 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,483.43
-168.53 -2.53%
Volume: 1.25M
Feb. 26, 2021 4:56p
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/zigman2/quotes/208225921/composite
add Add to watchlist SP 500 FUTURES
US : U.S.: Nasdaq
$ 33.15
+0.11 +0.33%
Volume: 143,290
Feb. 26, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$766.59 million
Rev. per Employee
$89,090
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/zigman2/quotes/210598365/realtime
add Add to watchlist NASDAQ 100 FUTURES
US : U.S.: Nasdaq
13,192.35
+72.91 +0.56%
Volume: 5.02M
Feb. 26, 2021 5:16p
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/zigman2/quotes/203323256/delayed
UK : U.K.: London
2,269.50 p
-80.50 -3.43%
Volume: 7.08M
Feb. 26, 2021 4:35p
P/E Ratio
21.22
Dividend Yield
4.92%
Market Cap
£128.07 billion
Rev. per Employee
N/A
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/zigman2/quotes/201824152/composite
US : U.S.: NYSE
$ 46.40
-1.41 -2.95%
Volume: 2.52M
Feb. 26, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$121.36 billion
Rev. per Employee
N/A
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/zigman2/quotes/201538663/delayed
NL : Netherlands: Euronext Amsterdam
16.90
-0.58 -3.32%
Volume: 0.00
Feb. 26, 2021 5:38p
P/E Ratio
N/A
Dividend Yield
3.38%
Market Cap
€127.09 billion
Rev. per Employee
N/A
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/zigman2/quotes/202286639/delayed
UK : U.K.: London
291.75 p
-12.80 -4.20%
Volume: 73.20M
Feb. 26, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
5.15%
Market Cap
£58.89 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202999625/composite
US : U.S.: Nasdaq
$ 182.55
+4.03 +2.26%
Volume: 2.93M
Feb. 26, 2021 4:00p
P/E Ratio
1,121
Dividend Yield
0.82%
Market Cap
$50.57 billion
Rev. per Employee
N/A
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/zigman2/quotes/208144392/composite
US : U.S.: Nasdaq
$ 84.51
+2.09 +2.54%
Volume: 48.96M
Feb. 26, 2021 4:00p
P/E Ratio
41.55
Dividend Yield
N/A
Market Cap
$102.37 billion
Rev. per Employee
$774,841
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/zigman2/quotes/203152288/delayed
XE : Germany: Xetra
36.00
+0.87 +2.48%
Volume: 0.00
Feb. 26, 2021 6:30p
P/E Ratio
116.96
Dividend Yield
0.61%
Market Cap
€46.82 billion
Rev. per Employee
€183,585
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/zigman2/quotes/202268164/delayed
XE : Germany: Xetra
64.40
-0.02 -0.03%
Volume: 595,584
Feb. 26, 2021 6:30p
P/E Ratio
72.89
Dividend Yield
N/A
Market Cap
€4.65 billion
Rev. per Employee
€687,312
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/zigman2/quotes/210293876/composite
US : U.S.: Nasdaq
$ 567.09
+7.32 +1.31%
Volume: 946,636
Feb. 26, 2021 4:00p
P/E Ratio
57.83
Dividend Yield
0.49%
Market Cap
$235.26 billion
Rev. per Employee
$567,632
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/zigman2/quotes/203646520/delayed
UK : U.K.: London
107.70 p
-4.35 -3.88%
Volume: 66.73M
Feb. 26, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£9.01 billion
Rev. per Employee
N/A
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/zigman2/quotes/208368645/delayed
FR : France: Euronext Paris
89.20
-0.95 -1.05%
Volume: 0.00
Feb. 26, 2021 5:38p
P/E Ratio
19.76
Dividend Yield
1.78%
Market Cap
€6.21 billion
Rev. per Employee
N/A
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/zigman2/quotes/203188900/delayed
IT : Italy: Milan
67.86
-0.38 -0.56%
Volume: 1,360
Feb. 26, 2021 5:35p
P/E Ratio
N/A
Dividend Yield
4.86%
Market Cap
€62.21 billion
Rev. per Employee
€504,268
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