European Stocks Gain as Earnings, SAP's Outlook Lift Sentiment

Last Updated: Wednesday, October 13, 2021 1:16 PM | MT Newswires

European stocks rose Wednesday following strong corporate results and guidance, and as Britain's GDP inched up in August.

The French CAC gained 0.8%, Germany's DAX and the Stoxx Europe 600 advanced 0.7%, while the Swiss Market Index rose 0.5% and the FTSE 100 in the UK was up 0.2%.

Britain's economy returned to growth in August after contracting in July, as bars, restaurants and festivals flourished during the first full month without COVID-19 restrictions, according to the latest data. The UK gross domestic product expanded 0.4% during the month following a revised 0.1% decline in July, narrowly missing the consensus estimate for growth of 0.5%. GDP remains 0.8% below the pre-pandemic total from February 2020, the Office for National Statistics said.

The eurozone's seasonally adjusted industrial production fell 1.6% in August, in line with estimates, Eurostat reported. On a year-over-year basis, August industrial production was up 5.1%, beating expectations for a gain of 4.7%.

Germany's consumer price index was uncganged for a second straight in September, according to data published by the national statistical agency Destatis, matching the flash estimate.Consumer prices were up 4.1% year-over-year in September, up from the 3.9% annual increase in August.

The US offered a revised steel deal to the European Union in a bid to settle their tariff dispute before new duties comes into effect Dec. 1, Bloomberg News reported. The new offer increases the quotas for steel imports allowed to enter the US under reduced tariffs and provides substantial duty-free access, according to Bloomberg's sources, while a EU spokesperson said any deal must respect World Trade Organization rules and take into account trade flows before the duties were imposed.

On the corporate front, SAP (SAP.F) was up nearly 4% after it raised its full-year sales outlook to reflect "strong" quarterly performance amid the acceleration of cloud revenue growth. The German software company said it now expects cloud revenue of 9.4 billion to 9.6 billion euros ($10.86 billion to $11.14 billion) at constant currencies, up from the prior estimate of 9.3 billion to 9.5 billion euros.

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