European shares surge on earnings, economic data

LONDON (BestGrowthStock) – European shares surged to a one-week closing high on Thursday on strong earnings results and some soothing macro-economic numbers, but their medium-term outlook remained bearish, analysts said.

The FTSEurofirst 300 (.FTEU3: ) index of top European shares provisionally finished 2.1 percent firmer at 1,038.89 points, the highest close since July 14. The index ended higher for a third straight session on Thursday.

“We have got some positive earnings results in the U.S. and the PMI numbers came in significantly above the consensus. For today, that alleviates growth concerns,” said Tammo Greetfeld, equity strategist at UniCredit.

“But it’s not the beginning of a new trend to the positive. It’s just a positive day in a broad sideways movement/correction phase.”

Financial stocks were among the top gainers, with the STOXX Europe 600 banking index (.SX7P: ) rising 3.1 percent. Standard Chartered (STAN.L: ), Barclays (BARC.L: ), Societe Generale (SOGN.PA: ) and Credit Agricole (CAGR.PA: ) rose 3.9 to 5.7 percent.

Investment Analysis

(Reporting by Atul Prakash)

European shares surge on earnings, economic data