European stocks end at record high on robust earnings By Reuters

By Anisha Sircar and Ambar Warrick

(Reuters) -European shares closed at a document excessive on Wednesday following sturdy earnings from the media and vitality sectors, whereas know-how shares fell as fears of elevated competitors weighed on common on-line meals supply firms.

The pan-European was up 0.2% at 483.76 factors, with media and vitality shares among the many prime gainers. British broadcaster ITV (LON:) surged 15.1% after it forecast record-high promoting income this yr.

Siemens spin-off Siemens Vitality superior 3.5% after proposing a 0.10 euros per share dividend on sturdy free money circulate positive aspects.

“We have seen sturdy earnings which have been fuelling rallies over the previous couple of weeks, however there are issues about companies’ efficiency in the direction of the tip of the yr – how this will likely begin to cede and dampen their capability to push greater if costs proceed to rise,” mentioned Daniela Sabin Hathorn, markets analyst at IG.

“Till we see a decisive transfer from central banks to vary charges and present power on their issues about taming inflation, fairness markets are going to stay sturdy.”

Earnings of firms listed on the STOXX 600 are anticipated to leap 60.7% within the third quarter to 104.4 billion euros ($120.7 billion) from a yr earlier, new Refinitiv information confirmed, a slight enchancment from final week’s 57.2% estimate.

Financial institution shares rose 0.5%, monitoring an increase in bond yields after information confirmed U.S. inflation rose greater than anticipated. Treasured metallic miners additionally gained as gold costs benefited from elevated hedging in opposition to inflation. [GVD/EUR] [GOL/]

Expertise shares had been the largest decliners for the day, dropping 1.3%. Semiconductor maker Infineon (OTC:) slipped 1.2% even after beating quarterly gross sales estimates, as buyers fretted over a worldwide chip scarcity.

On-line meals supply shares HelloFresh and Simply Eat Takeaway.com slipped 0.4% and three.3%, respectively, after U.S. peer DoorDash mentioned it will purchase Finland-based rival Wolt Enterprises in a deal valued at about 7 billion euros ($8.09 billion).

British retailer Marks & Spencer (OTC:) surged 16.5% to the highest of the STOXX 600 after exceeding first-half revenue forecasts and climbing its full-year outlook.

However the general private & family items sector fell 0.4%, dragged down by a 3.7% fall in Adidas (OTC:) after the German sportswear agency trimmed its 2021 forecasts attributable to sourcing disruptions and a difficult China market.

Luxurious shares, together with Kering (PA:), Hermes, Moncler, LVMH, and Burberry fell between 1% and a couple of.5% after information exhibiting an increase in Chinese language manufacturing facility inflation fuelled issues over stagflation within the nation, which is a prime purchaser of luxurious items.