Stock markets across the eurozone moved firmly into positive territory following an afternoon rally. An indication of returning investor risk appetite was provided by US exchanges with strong demand for technology shares. Ahead of the US rate decision, market sentiment was further supported by declining oil prices amid hopes for diplomacy in the Persian Gulf.
The EuroStoxx 50 closed the session 0.79 percent higher at 6,164.69 points, building on its recovery from lows seen since June, which had started at the beginning of the week. Country indexes outside the eurozone presented a mixed picture. While the Swiss SMI rose by 0.40 percent to 14,597.63 points, the British FTSE 100 remained in negative territory, losing 0.75 percent to finish at 10,686.54 points under the influence of disappointing quarterly reports.
Automotive stocks formed the weakest sector in Europe after Mercedes-Benz negatively surprised investors with a lowered profit target. This development pushed the shares of the Stuttgart-based manufacturer down by nearly four percent, making them the clear laggard in the EuroStoxx. In Paris, shares of Renault and the supply group Valeo followed the downward trend.
In London, a 5.4 percent drop in shares of HSBC shaped the negative picture, accompanied by Reckitt with a decline of nearly five percent. The major bank was weighed down by mixed quarterly numbers, disappointing with net interest income and its wealth management division. Reckitt frustrated investors with sales growth and a cut annual target.
Technology stocks provided support in the wake of the New York Nasdaq, with Infineon emerging as the top performer in the EuroStoxx. Shortly before the release of quarterly figures from tech giants Alphabet and Microsoft after the US market close, investors renewed their interest in artificial intelligence shares that had recently fallen out of favor.
In Zurich, Novartis provided support with a gain of one percent. The negative impact of generic drug competition in the third quarter continued to ease, while the pharmaceutical company also benefited from productivity improvements. As a result, Novartis reported higher-than-expected adjusted earnings and grew more optimistic regarding this year's profit development.
Among smaller Swiss capital values, shares of Inficon advanced by over eight percent following earnings releases. The semiconductor recovery left the sensor manufacturer optimistic for the year 2027. Shares of the packaging company SIG Group surged by nearly ten percent in Zurich after the group exceeded even the most optimistic expectations with its quarterly figures and raised its annual and medium-term targets.
