Stocks rise on earnings increase, but have their worst month in a year

Stocks rise on earnings increase, but have their worst month in a year

European stocks rose on Tuesday, as investors were encouraged by a series of corporate earnings, but the benchmark index ended October sharply lower due to concerns about economic growth and interest rates remaining high for a longer period.

The European STOXX 600 index closed 0.59 percent higher at 433.66 points, but it still recorded its worst monthly performance since September 2022.

The benchmark index recorded its decline for the third month in a row, declining by about 3.7% during that period.

“I’m not making a lot of gains today because, to some extent, they make up for lost ground,” said Michael Field, European equity strategist at Morningstar.


“We’re back to that point where stocks aren’t expensive, but they’re not cheap either. Unless the economic picture turns positive, there’s no reason for stock markets to rebound strongly by the end of the year.”

Euro zone economic growth was weaker than expected in the third quarter, according to a preliminary estimate, with gross domestic product contracting slightly from the previous quarter and the annual growth rate slowing sharply.

German retail sales fell in September due to continued high inflation.

Investors’ focus turned to decisions made by US and UK central banks this week.

On the day, the real estate sector was the best performer, with a 2.7% increase, with Belgian healthcare real estate investment firm Aedifica jumping 5.0% after raising its full-year earnings forecast.

The chemicals sector rose 1.7%, with BASF shares rising 4.5% despite a decline in third-quarter profits and a reduction in its expectations for the full year as markets fear worse results.

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The energy sector was most affected due to the decline of BP by 4.6%. In London, the Financial Times Index fell by 0.08% to 7,321.72 points.

In Frankfurt, the DAX index rose 0.64% to 14,810.34 points.

In Paris, the CAC 40 index rose by 0.89% to 6,885.65 points.

In Milan, the Ftse/Mib index rose 1.47% to 27,741.91 points.

In Madrid, the Ibex-35 index recorded an increase of 0.04%, to 9017.30 points.

In Lisbon, the PSI20 index rose 0.63% to 6,257.06 points.


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