European shares hit one-month high as banks, Sodexo shine

Published: November 08, 2018 15:34:12 | Updated: November 10, 2018 11:34:10

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 29, 2018. Reuters/Staff

European shares rallied to one-month highs on Thursday, extending gains following the US midterm elections, as strong results from SocGen and Commerzbank and France’s Sodexo soothed concerns about slowing corporate earnings.

The pan-European STOXX 600 was up 0.6 per cent at 0854 GMT, extending the previous session’s gains and after hitting its highest since Oct. 10.

The leading index of euro zone stocks .STOXX50E rose 0.4 per cent with Germany's DAX .GDAXI up 0.4 per cent and France's CAC 40 .FCHI 0.4 per cent higher.

The banking and insurance indexes .SX7P .SXIP were among the top performing sectors, each up 1.1 per cent, with travel and leisure .SXTP flying high after Sodexo’s (EXHO.PA) better-than-expected revenue.

Shares in the world’s second-biggest catering company jumped 6 per cent to their highest since March and on track for their best day since July, according to Reuters news agency.

Italy’s third-largest lender Banco BPM (BAMI.MI) jumped 7.6 per cent after its third-quarter net profit beat forecasts thanks to lower costs and an asset sale that helped offset flat fees and falling interest income.

Commerzbank (CBKG.DE) and SocGen (SOGN.PA) were up 4.6 per cent and 4 per cent respectively after solid earnings updates.

It wasn’t all good news though. Shares of broadcaster ProSiebenSat.1 (PSMGn.DE) plunged 17 per cent to the bottom of the STOXX 600, hitting lowest level in more than six years after cutting its dividend and warning on its full-year outlook.

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