STOXX 600 Rises as US Data Boosts Sentiment

European stock markets strengthened on Tuesday (October 27), with the STOXX Europe 600 index climbing 0.5%, buoyed by a decline in oil prices and robust US economic data. Mining and technology stocks led the gains, while the personal care and automotive sectors lagged.

Investor sentiment was further bolstered by an unexpected rise in US consumer confidence in October—the first such increase in four months—driven primarily by a more positive outlook on the labor market and business conditions.

In the energy market, Brent crude fell 1.8% to approximately US$114 per barrel, following remarks by Iranian leader Mojtaba Khamenei, who reiterated his country’s conditions for ending hostilities with the US. This development comes amid heightened diplomatic activity, with several Arab Gulf states calling for a security agreement to bring an end to the conflict.

Investors are also closely monitoring Europe’s third-quarter earnings season to gauge the impact of rising energy costs and political instability on corporate performance. The regional benchmark index remains below the record high reached in August, suggesting that investors remain cautious despite the market’s recovery.

On the corporate front, shares of HSBC plunged 5.4% after its third-quarter profit fell short of expectations, even though the bank maintained its outlook for the remainder of the year. Reckitt Benckiser shares also dropped 4.9% after the company lowered its sales forecast, citing supply constraints in the US and a weakening vitamin business in China.

Conversely, Porsche AG shares rose 3.8%, as the company’s profitability remained resilient despite another sharp decline in vehicle sales. These movements indicate that investors are being selective in their reactions to earnings reports, with a particular focus on profit outlooks and corporate resilience.

Source: Newsmaker.id