European Stocks Rise Amid Earnings Barrage
European stocks rose on Thursday when company results grabbed investors' attention before a new batch of US economic data, and after Wall Street kicked back into action after its hurricane shutdown.
In midday deals, London's benchmark FTSE 100 index of top companies added 0.52 percent to 5,813.48 points, Frankfurt's DAX 30 advanced 0.52 percent to 7,298.01 points and in Paris the CAC 40 gained 0.55 percent to 3,448.23.
In foreign exchange activity, the euro eased to $1.2956 from $1.2958 late in New York on Wednesday. Gold prices increased to $1,724.15 an ounce on the London Bullion Market, from $1,719 an ounce.
Wall Street reopened on Wednesday after a historic two-day closure forced by superstorm Sandy, with the interruption having little impact on share prices themselves: the markets ended mostly unchanged from Friday's close.
Later on Thursday, investors will digest key US data including payrolls company ADP's private sector hiring report and the ISM purchasing manager index, as well as construction spending and jobless claims.
The focus will switch to hotly-awaited non-farm payrolls (NFP) numbers on Friday.
"What we are seeing is a mixture of traders in the US still getting back to normality after missing the start of the week, and also people positioning themselves ahead of a lot of very important data out of the US," said Alpari analyst Craig Erlam.
He added: "I think we'll continue to see choppy markets all day, but I am not expecting any major moves. There's plenty of important data out this afternoon but the jobs report tomorrow is the big daddy of them all."
Asian stock markets traded mixed on Thursday, with stronger Chinese manufacturing data providing support as Tokyo's rise was stunted by a huge slump in electronics giant Panasonic.
Data showed China's manufacturing activity expanded in October for the first time in three months, adding to renewed optimism that the world's number two economy is beginning to awake from its recent slumber.
The purchasing managers' index (PMI) stood at 50.2 last month, better than 49.8 in September, according to official figures. A PMI reading above 50 indicates expansion while anything below points to contraction.
In reaction, Shanghai surged 1.72 percent, Hong Kong gained 0.83 percent and Tokyo added 0.21 percent, but Seoul and Sydney finished in negative territory.
The results season was in full swing in London. Shares in British telecom group BT rallied after posting a 14-percent jump in net profits to £564 million in its second quarter, or three months to the end of September.
In response, BT shares surged 7.25 percent to 227.9 pence, topping the FTSE 100 leaderboard.
State-rescued Lloyds bank saw its share price soar by 6.60 percent to 43.24 pence, despite news that it has set aside £1.0 billion ($1.6 billion, 1.2 billion euros) to compensate clients who were mis-sold insurance.
Lloyds Banking Group, which is 39.6-percent owned by the taxpayer after a vast bailout at the height of the global financial crisis, added that it faced a net loss of £361 million in the three months to the end of September.
However, that marked an improvement from a shortfall of £501 million a year earlier, as it cut bad debts and narrowed losses from its non-core businesses.
"There may be little to enthuse in the numbers, but at the same time measurable progress continues to be made," noted Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers.
Meanwhile, heavyweight Royal Dutch Shell posted a slight 2.0-percent rise in net profit to $7.139 billion (5.514 billion euros) in the third quarter, saying it had faced "volatile energy markets".
Adjusted net profit -- a key measure stripping out changes in the value of inventories and other non-operating items -- fell 6.0 percent to $6.56 billion but this beat market expectations of $6.31 billion.
Investors warmed to the results, sending Shell's 'A' share price 1.22 percent to 2,251 pence.
Separately, British pay-TV giant BSkyB said on Thursday that its quarterly net profits fell, as an exceptional loss offset a rise in revenues and customers thanks to the Olympics and other British sporting success.
Profit after tax dipped 2.6 percent to £219 million in the three months to September 30 compared with the outcome in the first quarter of its 2011/12 financial year.
However, the group's share price increased by a hefty 4.96 percent to 744.2 pence in midday deals.
Source: Agence France Presse
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