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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 -2.03% 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 -2.17% was flat, while the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -1.98% rose 0.5%, and the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -2.15% gained 0.8%.

U.S. stock futures /zigman2/quotes/208225921/composite SP -0.27% /zigman2/quotes/210598365/realtime COMP -2.55% 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 -1.73% 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 -1.32% , Royal Dutch Shell /zigman2/quotes/201538663/delayed NL:RDSA -2.34% , and BP /zigman2/quotes/202286639/delayed UK:BP -1.95% all rose more than 1%.

European semiconductor-related stocks rose after shares of NXP Semiconductors /zigman2/quotes/202999625/composite NXPI -4.49% rallied late in the U.S. on Thursday, due to a higher outlook . And Advanced Micro Devices /zigman2/quotes/208144392/composite AMD -3.58% 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 -2.38% and ASM International gained 3% each, and those for Dialog Semiconductor /zigman2/quotes/202268164/delayed XE:DLG -0.18% rose 1.2%, and ASML Holding /zigman2/quotes/210293876/composite ASML -4.75% rose 1.7%.

Shares of Rolls-Royce Holdings /zigman2/quotes/203646520/delayed UK:RR -4.52% 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 -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 -2.72% 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
436.35
-9.04 -2.03%
Volume: 0.00
May 11, 2021 12:20p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,066.96
-333.45 -2.17%
Volume: 26,717
May 11, 2021 12:20p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,259.65
-126.34 -1.98%
Volume: 26,334
May 11, 2021 12:20p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,970.69
-152.99 -2.15%
Volume: 270,138
May 11, 2021 11:20a
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/zigman2/quotes/208225921/composite
add Add to watchlist SP 500 FUTURES
US : U.S.: Nasdaq
$ 33.32
-0.09 -0.27%
Volume: 91,278
May 10, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$775.29 million
Rev. per Employee
$89,090
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/zigman2/quotes/210598365/realtime
add Add to watchlist NASDAQ 100 FUTURES
US : Nasdaq
13,401.86
-350.38 -2.55%
Volume: 4.37M
May 10, 2021 5:16p
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/zigman2/quotes/203323256/delayed
UK : U.K.: London
2,334.50 p
-41.00 -1.73%
Volume: 1.01M
May 11, 2021 11:20a
P/E Ratio
21.83
Dividend Yield
4.93%
Market Cap
£132.14 billion
Rev. per Employee
N/A
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/zigman2/quotes/201824152/composite
US : U.S.: NYSE
$ 47.27
-0.63 -1.32%
Volume: 2.08M
May 10, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$123.54 billion
Rev. per Employee
$1.14M
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/zigman2/quotes/201538663/delayed
NL : Netherlands: Euronext Amsterdam
16.26
-0.39 -2.34%
Volume: 5.47M
May 11, 2021 12:20p
P/E Ratio
N/A
Dividend Yield
3.51%
Market Cap
€125.60 billion
Rev. per Employee
€1.71M
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/zigman2/quotes/202286639/delayed
UK : U.K.: London
309.55 p
-6.15 -1.95%
Volume: 14.43M
May 11, 2021 11:20a
P/E Ratio
N/A
Dividend Yield
4.81%
Market Cap
£63.24 billion
Rev. per Employee
£2.21M
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/zigman2/quotes/202999625/composite
US : U.S.: Nasdaq
$ 189.03
-8.89 -4.49%
Volume: 2.85M
May 10, 2021 4:00p
P/E Ratio
127.37
Dividend Yield
1.19%
Market Cap
$54.58 billion
Rev. per Employee
$296,966
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/zigman2/quotes/208144392/composite
US : U.S.: Nasdaq
$ 75.99
-2.82 -3.58%
Volume: 45.13M
May 10, 2021 4:00p
P/E Ratio
32.30
Dividend Yield
N/A
Market Cap
$95.76 billion
Rev. per Employee
$774,841
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/zigman2/quotes/203152288/delayed
XE : Germany: Xetra
30.80
-0.75 -2.38%
Volume: 2.78M
May 11, 2021 12:20p
P/E Ratio
99.74
Dividend Yield
0.71%
Market Cap
€42.27 billion
Rev. per Employee
€183,585
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/zigman2/quotes/202268164/delayed
XE : Germany: Xetra
64.88
-0.12 -0.18%
Volume: 47,397
May 11, 2021 12:18p
P/E Ratio
64.12
Dividend Yield
N/A
Market Cap
€4.64 billion
Rev. per Employee
€527,987
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/zigman2/quotes/210293876/composite
US : U.S.: Nasdaq
$ 627.26
-31.31 -4.75%
Volume: 882,685
May 10, 2021 4:00p
P/E Ratio
49.63
Dividend Yield
0.44%
Market Cap
$275.07 billion
Rev. per Employee
$567,632
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/zigman2/quotes/203646520/delayed
UK : U.K.: London
104.72 p
-4.96 -4.52%
Volume: 20.16M
May 11, 2021 11:20a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£8.93 billion
Rev. per Employee
£244,046
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/zigman2/quotes/208368645/delayed
FR : France: Euronext Paris
84.30
-0.05 -0.06%
Volume: 37,442
May 11, 2021 12:20p
P/E Ratio
20.31
Dividend Yield
2.67%
Market Cap
€9.06 billion
Rev. per Employee
€616,308
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/zigman2/quotes/203188900/delayed
IT : Italy: Milan
68.90
-1.93 -2.72%
Volume: 726.00
May 11, 2021 12:09p
P/E Ratio
N/A
Dividend Yield
4.79%
Market Cap
€64.64 billion
Rev. per Employee
€536,246
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