European Markets Climbed On Strong Corporate Earnings Results

(RTTNews) - The majority of the European markets finished to the upside Wednesday, bouncing back from the weakness of the prior session. Investor sentiment received a boost from strong earnings reports from companies such as ING. Investors also combed through a number of economic reports, such as the weaker than expected European retail sales data, the surge in German factory orders and the rebound in British industrial production.

Investors will be watching for interest rate decisions from both the European Central Bank and the Bank of England tomorrow. Also on the horizon is the all important U.S. jobs report for October on Friday.

Euro money market turnover increased in the second quarter versus a year ago and interbank trading conditions are stabilizing, a latest survey by the European Central Bank showed on Wednesday.

The "Euro Money Market Survey 2013" highlighted the main developments in the euro money market in the second quarter of 2013, comparing them with those in the second quarter of 2012. Results are derived from a constant panel of 104 banks.

Total turnover in the euro money market grew 3 percent year-on-year to EUR 75 trillion in the second quarter. This was in contrast to an 18 percent plunge in the same period last year.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.61 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.25 percent.

The DAX of Germany climbed by 0.35 percent and the CAC 40 of France advanced by 0.79 percent. The FTSE 100 of the U.K. fell by 0.08 percent, but the SMI of Switzerland gained by 0.92 percent.

In Frankfurt, Sky Deutschland increased by 1.25 percent. Berenberg downgraded the stock to ''Hold'' from ''Buy.''

Fraport gained 0.67 percent, after reporting an increase in profit.

Car parts maker Elringklinger, which announced quarterly results, advanced by 0.82 percent.

In Paris, Alstom climbed by 5.81 percent, after its quarterly report.

Lafarge finished up by 0.28 percent. The cement giant reported quarterly results.

In London, Associated British Foods increased by 2.76 percent. Citigroup raised its price target on the stock.

EasyJet gained 0.91 percent. The low-cost airline reported traffic data for October. Peer Ryanair added 1.79 percent after HSBC upgraded the stock to ''Overweight'' from ''Neutral.''

Experian sank by 6.04 percent. The company has agreed to acquire US-based Passport Health Communications Inc. for $850 million.

Old Mutual rose by 2.30 percent, after its third quarter revenues improved.

Mondi, which reported quarterly results, dropped by 4.12 percent.

ING climbed by 3.49 percent in Amsterdam. The financial firm reported about 85 percent fall in the third-quarter net profit, but underlying net profit improved 5.6 percent, driven by solid performance at both ING Bank and Insurance EurAsia.

Vestas Wind Systems surged by 14.91 percent in Copenhagen. The firm reported a narrower quarterly loss.

Eurozone retail sales declined slightly more than expected in September driven by the weakness in food and non-food product turnover, data showed Wednesday. The volume of retail sales dropped 0.6 percent month-on-month, reversing August's 0.5 percent rise, Eurostat reported. Economists had forecast sales to fall 0.4 percent in September.

Eurozone's private sector business activity expanded at a slightly faster pace than previously estimated in October, detailed results of a survey by Markit Economics showed Wednesday. However, the rate of expansion remained weaker than that of September.

The composite output index, an indicator that measures performance of both manufacturing and service sectors, came in at 51.9, higher than the flash reading of 51.5. In September, the index stood at 52.2, a 27-month high.

Germany's private sector growth remained unchanged in October, according to final survey data released by Markit Economics. At 53.2 in October, the seasonally adjusted final composite output index which measures the combined output of the manufacturing and service sectors - was unchanged from September and comfortably above the 50.0 no-change value, it said Wednesday. The flash reading for October was 52.6.

Germany's manufacturing orders recovered at a faster-than-expected pace in September, supported by a further strong rise in demand for capital goods, signaling continued improvement in the domestic economy at the start of the fourth quarter.

New business placed with German manufactures climbed a seasonally and calendar-adjusted 3.3 percent from August, when they decreased by 0.3 percent, data from the Federal Ministry of Economics and Technology showed Wednesday.

The growth rate far exceeded the 0.5 percent gain economists had forecast. In July, the manufacturing sector had recorded a 2 percent fall in demand.

French service sector business activity edged higher for a second consecutive month in October, albeit at a weaker pace, detailed results of a survey by Markit Economics showed Wednesday. The final services activity index scored 50.9 in October. This was higher than the flash reading of 50.2, but was below September's score of 51.

British industrial production bounced back at a stronger-than-expected pace in September, after a decline in the previous month as manufacturing sector recovered, the latest figures from the Office for National Statistics showed Wednesday.

Total production increased 0.9 percent on a monthly basis in September, compared with the forecast for a 0.6 percent gain. This followed a 1.1 percent drop in August.

Overall shop prices continued to deflate in October, the British Retail Consortium reported Wednesday. BRC said its Shop Price reading for October was minus-0.5 percent, compared to minus-0.2 percent for September. It was the highest deflation record on record for October.

Residential property prices in the U.K. increased at a significantly faster pace in October, but to a slightly lesser extent than expected by economists, latest data showed Wednesday.

The house price index grew 6.9 percent on an annual basis in the three months to October, following a 6.2 percent gain in September, Lloyds Banking Group's housing division Halifax said. Economists were looking for a 7 percent increase.

Suggesting a modest expansion by the U.S. economy before the government shutdown, the Conference Board released a report on Wednesday showing that its index of leading economic indicators rose in line with estimates in the month of September.

The Conference Board said its leading economic index rose by 0.7 percent in September following a matching increase in August. The continued increase by the index also matched economist estimates.