(RTTNews) - European markets closed higher on Wednesday, as investors picked up stocks, reacting positively to some earnings announcements and on optimism the U.S. lawmakers will eventually agree on a stimulus package.
Some somewhat disappointing eurozone economic data limited markets' gains.
The pan European Stoxx 600 advanced 0.49%. The U.K.'s FTSE 100 climbed 1.14%, France's CAC 40 ended up 0.9% and Germany's DAX gained 0.47%, while Switzerland's SMI declined 0.63%.
Among other markets in Europe, Austria, Czech Republic, Greece, Ireland, Netherlands, Norway, Poland, Portugal, Russia and Sweden closed with sharp to moderate gains.
Belgium, Iceland, Spain and Turkey ended modestly higher, while Denmark and Finland ended flat.
In the U.K. market, IAG climbed up nearly 10%. Evraz notched up a gain of 8.3%, while Coca-Cola and Fresnillo gained 7.3% and 7.1%, respectively.
Compass Group, Polymetal International, EasyJet, Rolls-Royce Holdings, JD Sports Fashion, Meggitt, BHP Group, Johnson Matthey, Kingfisher, Antofagasta and Anglo American gained 4 to 6%. Aveva Group, M&G, TUI, Rio Tinto, Prudential, BP and Barclays also rose sharply.
Diageo slid more than 3.5%, extending losses from previous session. National Grid, Centrica and Reckit Benckiser also ended notably lower.
In the German market, Lufthansa rallied more than 7%. Thyssenkrupp gained about 5.1%, while HeidelbergCement, Covestro and Vonovia gained 3 to 3.4%. Vonovia rose after confirming its guidance for the year. The company reported an 8% increase in first-half profits.
Commerzbank shares rose sharply after the lender reported a lower-than-expected drop in net profit for the second quarter.
Deutsche Post, Henkel, BASF, Daimler, Siemens, RWE, Merck and Adidas also ended notably higher.
Fresenius declined nearly 6%. Fresenius Medical Care ended lower by 3.4%. BMW also lost more than 3% after reporting a 666 million euros loss before interest and taxes for the quarter ended June 2020. Continental, Infineon Technologies and Bayer lost 1.6 to 2%.
In France, ArcelorMittal gained 5.6% and Safran ended higher by 5%. Vinci, Airbus Group, Accor, Sodexo, Technip, Legrand, Renault, Peugeot and Capgemini gained 2 to 4%.
In economic news, the euro area private sector expanded at the fastest pace since mid-2018 after four months of contraction, final data from IHS Markit showed today.
The IHS Markit final composite output index rose to 54.9 in July from 48.5 in June as easing of Covid-19 lockdown restrictions boosted demand and expectations. The flash reading was 54.8.
Both the manufacturing and service sectors reported marked rates of growth in July, with manufacturing registering the slightly stronger pace of expansion.
Separately, Eurozone retail sales grew at a moderate pace in June after rebounding sharply in May, data from Eurostat showed. Retail sales increased 5.7% on a monthly basis, following a 20.3% increase in May. Economists had forecast a 5.9% increase for June.
The U.K. service sector logged its strongest growth in five years in July as the phased reopening of business operations lifted corporate and household spending, final data from IHS Markit showed.
The final IHS Markit/Chartered Institute of Procurement & Supply services Purchasing Managers' Index rose to 56.5 in July from 47.1 in June. The flash score was 56.6.
Meanwhile, there is some optimism that U.S. lawmakers will eventually reach an agreement on a new coronavirus relief bill. According to reports, Democratic leaders said they continue to make progress toward an agreement after meeting with Trump administration officials on Tuesday.
"We're making progress," said Senate Minority Leader Chuck Schumer, D-N.Y. "We really went down issue by issue by issue, slogging through them,"
The comments from Schumer come after Senate Majority Leader Mitch McConnell, R-Ken., indicated he would support any agreement between Democrats and the White House.
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