Stoxx 600 set for 1.7% rise in October
Stocks across Europe stuck around five-month highs Tuesday, with the last session of what's set to be a winning month of October seeing share-price gains for airline Ryanair Holdings PLC and oil major BP PLC.
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What stock indexes are doing: The Stoxx Europe 600 index picked up 0.2% to 394.70, with only the telecommunications sector in the red. The index on Monday rose 0.1% (http://www.marketwatch.com/story/spanish-stocks-shoot-higher-buoying-european-equities-at-5-month-high-2017-10-30), enough to score its highest close since May 16.
For October, the regional benchmark was cruising toward a 1.7% rise and that would be its second monthly rise in row.
In Paris, the CAC 40 edged up 0.1% to 5,499.32, and in London, the FTSE 100 rose 0.4% to 7,515.07 (http://www.marketwatch.com/story/ftse-100-advances-as-bp-shares-rally-to-3-year-high-2017-10-31). Those indexes were in line for monthly gains of 3.2% and 1.9%, respectively.
In Madrid, the IBEX 35 was up 0.7% at 10,514.50.
Trading was closed in Germany for the Reformation Day holiday. The DAX 30 index on Monday ended at a record high of 13,229.57. The German benchmark ended the month with a 3.1% gain.
What's moving markets: Earnings were once again in the drivers' seat, while a trio of economic data for the eurozone also was in focus (http://www.marketwatch.com/story/eurozone-economy-slows-as-inflation-slips-to-14-2017-10-31).
The flash estimate for inflation in the currency union showed consumer prices rose 1.4% in October, down from 1.5% in September, falling further below the European Central Bank's target of close to, but below 2%.
Gross domestic product growth of 0.6% for the third quarter was above expectations, while the unemployment rate for September dropped to 8.9%. That was the lowest joblessness rate since 2009.
Stock movers: Ryanair Holdings PLC climbed 5.6% as the budget carrier stuck with its full-year earnings target (http://www.marketwatch.com/story/ryanair-earnings-fall-sticks-with-guidance-2017-10-31) even as quarterly net profit was dented by compensation costs for passengers. Ryanair in September and October canceled thousands of flights because of problems scheduling staff.
BP shares (BP.LN)(BP.LN) surged 3.6% to trade at their highest since July 2014 as the oil producer said it will restart its share buyback program, supported by strong cash generation so far this year. BP's third-quarter underlying replacement cost profit was $1.87 billion, above consensus expectations of $1.58 billion (http://www.marketwatch.com/story/bp-to-restart-share-buybacks-after-production-rise-2017-10-31), according to Reuters.
Weir Group PLC (WEIR.LN) shares dropped 5.2% as the engineering company warned that operating profit for the year would be lower than previously indicated (http://www.marketwatch.com/story/weir-warns-on-profit-even-as-orders-rise-2017-10-31).
BNP Paribas SA (BNP.FR) fell 3.1% as the French lender's quarterly revenue slipped (http://www.marketwatch.com/story/bnp-paribas-profit-rises-on-sbi-life-stake-sale-2017-10-31) to EUR10.39 billion from EUR10.59 billion a year ago. Profit, however, rose and was lifted by a capital gain from the sale of a 4% stake in its Indian joint venture SBI Life.
Croda International PLC (CRDA.LN) shares leapt 3.6% as the specialty chemicals maker backed its full-year guidance (http://www.marketwatch.com/story/croda-saes-rise-backs-full-year-guidance-2017-10-31) and said third-quarter sales rose 6% to GBP334.6 million ($440.8 million).
Outside of earnings, Burberry Group PLC (BRBY.LN) (BRBY.LN) fell 2.2%, swinging lower after the luxury goods maker said President and COO Christopher Bailey will leave at the end of 2018.
What strategists are saying: "Eurozone inflation took a surprise tumble this morning, with the core CPI reading falling to the joint lowest reading in seven-months. Coming the week after markets took on-board a perceived dovish stance from the ECB, today's tumbling inflation reading proves that it may be wrong to write off eurozone QE quite yet," said IG market analyst Joshua Mahony in a note.
"Interestingly, the eurozone growth story remains on track, with GDP reaching the highest level in a decade, with unemployment falling below 9% for the first time since 2009."
(END) Dow Jones Newswires
October 31, 2017 06:59 ET (10:59 GMT)