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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 +0.41% 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 +0.37% was flat, while the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.56% rose 0.5%, and the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.07% gained 0.8%.

U.S. stock futures /zigman2/quotes/208225921/composite SP -0.10% /zigman2/quotes/210598365/realtime COMP +0.92% 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 +0.56% 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 +0.87% , Royal Dutch Shell /zigman2/quotes/201538663/delayed NL:RDSA -0.15% , and BP /zigman2/quotes/202286639/delayed UK:BP -0.23% all rose more than 1%.

European semiconductor-related stocks rose after shares of NXP Semiconductors /zigman2/quotes/202999625/composite NXPI +0.81% rallied late in the U.S. on Thursday, due to a higher outlook . And Advanced Micro Devices /zigman2/quotes/208144392/composite AMD +0.55% 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 +3.50% and ASM International gained 3% each, and those for Dialog Semiconductor /zigman2/quotes/202268164/delayed XE:DLG +5.78% rose 1.2%, and ASML Holding /zigman2/quotes/210293876/composite ASML +3.37% rose 1.7%.

Shares of Rolls-Royce Holdings /zigman2/quotes/203646520/delayed UK:RR -0.60% were again rising, up 13%. Shares have gained 95% this week, but remain 67% lower year to date.

The London Stock Exchange /zigman2/quotes/206625606/delayed UK:LSE +0.92% has agreed to sell its entire shareholdering in the parent company of Borsa Italia to Euronext /zigman2/quotes/208368645/delayed FR:ENX +0.06% 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 +1.56% 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
393.23
+1.60 +0.41%
Volume: 0.00
Nov. 27, 2020 11:03p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,335.68
+49.11 +0.37%
Volume: 63,823
Nov. 27, 2020 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,598.18
+31.39 +0.56%
Volume: 84,634
Nov. 27, 2020 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,367.58
+4.65 +0.07%
Volume: 1.42M
Nov. 27, 2020 4:59p
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/zigman2/quotes/208225921/composite
add Add to watchlist SP 500 FUTURES
US : U.S.: Nasdaq
$ 30.01
-0.03 -0.10%
Volume: 121,183
Nov. 27, 2020 1:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$692.88 million
Rev. per Employee
$69,611
loading...
/zigman2/quotes/210598365/realtime
add Add to watchlist NASDAQ 100 FUTURES
US : U.S.: Nasdaq
12,205.85
+111.44 +0.92%
Volume: 3.22M
Nov. 27, 2020 4:14p
loading...
/zigman2/quotes/203323256/delayed
UK : U.K.: London
1,737.80 p
+9.60 +0.56%
Volume: 8.12M
Nov. 27, 2020 4:35p
P/E Ratio
13.94
Dividend Yield
5.28%
Market Cap
£99.93 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201824152/composite
US : U.S.: NYSE
$ 45.14
+0.39 +0.87%
Volume: 1.13M
Nov. 27, 2020 5:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$118.41 billion
Rev. per Employee
$1.64M
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/zigman2/quotes/201538663/delayed
NL : Netherlands: Euronext Amsterdam
15.12
-0.02 -0.15%
Volume: 12.19M
Nov. 27, 2020 5:39p
P/E Ratio
N/A
Dividend Yield
3.61%
Market Cap
€114.97 billion
Rev. per Employee
€3.66M
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/zigman2/quotes/202286639/delayed
UK : U.K.: London
262.90 p
-0.60 -0.23%
Volume: 86.93M
Nov. 27, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
5.99%
Market Cap
£52.86 billion
Rev. per Employee
£3.11M
loading...
/zigman2/quotes/202999625/composite
US : U.S.: Nasdaq
$ 158.94
+1.27 +0.81%
Volume: 1.04M
Nov. 27, 2020 1:00p
P/E Ratio
N/A
Dividend Yield
0.94%
Market Cap
$44.46 billion
Rev. per Employee
$301,939
loading...
/zigman2/quotes/208144392/composite
US : U.S.: Nasdaq
$ 87.19
+0.48 +0.55%
Volume: 22.72M
Nov. 27, 2020 1:15p
P/E Ratio
120.36
Dividend Yield
N/A
Market Cap
$104.86 billion
Rev. per Employee
$590,439
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/zigman2/quotes/203152288/delayed
XE : Germany: Xetra
29.61
+1.00 +3.50%
Volume: 5.36M
Nov. 27, 2020 6:30p
P/E Ratio
105.81
Dividend Yield
0.74%
Market Cap
€38.51 billion
Rev. per Employee
€183,585
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/zigman2/quotes/202268164/delayed
XE : Germany: Xetra
45.90
+2.51 +5.78%
Volume: 911,323
Nov. 27, 2020 6:30p
P/E Ratio
51.95
Dividend Yield
N/A
Market Cap
€3.32 billion
Rev. per Employee
€687,312
loading...
/zigman2/quotes/210293876/composite
US : U.S.: Nasdaq
$ 437.77
+14.29 +3.37%
Volume: 432,496
Nov. 27, 2020 1:00p
P/E Ratio
48.96
Dividend Yield
0.55%
Market Cap
$183.77 billion
Rev. per Employee
$531,306
loading...
/zigman2/quotes/203646520/delayed
UK : U.K.: London
107.65 p
-0.65 -0.60%
Volume: 62.87M
Nov. 27, 2020 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/206625606/delayed
UK : U.K.: London
7,920.00 p
+72.00 +0.92%
Volume: 1.24M
Nov. 27, 2020 4:35p
P/E Ratio
70.41
Dividend Yield
0.92%
Market Cap
£27.72 billion
Rev. per Employee
£466,062
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/zigman2/quotes/208368645/delayed
FR : France: Euronext Paris
88.70
+0.05 +0.06%
Volume: 81,739
Nov. 27, 2020 5:35p
P/E Ratio
20.85
Dividend Yield
1.79%
Market Cap
€6.18 billion
Rev. per Employee
€634,450
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/zigman2/quotes/203188900/delayed
IT : Italy: Milan
61.25
+0.94 +1.56%
Volume: 1,189
Nov. 27, 2020 5:35p
P/E Ratio
N/A
Dividend Yield
5.39%
Market Cap
€55.95 billion
Rev. per Employee
€504,268
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