Investing.com – European stock markets edged higher Thursday, as investors digested more third-quarter corporate earnings as well as the latest regional economic activity data.
At 03:05 ET (07:05 GMT), the in Germany traded 0.2% higher, the in France rose 0.4% and the in the U.K. gained 0.4%.
PMIs in focus
Investors will study a raft of preliminary Purchasing Managers’ Index readings from the major eurozone countries during Thursday’s session, amid concerns about the region’s growth prospects.
Business activity in the bloc is expected to have remained in contractionary territory this month, keeping pressure on the European Central Bank to continue cutting interest rates.
The has cut interest rates three times already this year, all by 25 basis points, and expectations are growing that the central bank will agree to a larger reduction of half a percentage point in December.
ECB President said on Wednesday the central bank would need to be cautious when deciding on further easing, but weak PMI data could force her hand.
Barclays boosted by investment bank
There are more earnings for investors to digest Thursday, as the third quarter results season continues.
Barclays (LON:) stock rose 2% after the British lender reported a hefty jump in net profit for the third quarter, as its investment bank cashed in on a jump in corporate dealmaking and trading during the period.
Unilever (LON:) stock rose 2% after the consumer goods giant reported a rise in underlying quarterly sales after winning back more shoppers with product innovations and slower price increases, posting its biggest gain in sales volumes in three-and a-half-years.
Hermes (EPA:) stock rose 3% after the French company reported a substantial rise in third-quarter sales, continuing to outshine rivals hit hard by a downturn in China as its luxury handbags lure wealthy shoppers.
Danone (EPA:) stock rose 2.5% after the French food company beat third-quarter sales expectations, boosted by higher sales volumes as price hikes slowed, and reflecting strong demand in North America.
Orange (EPA:) stock rose 1.7% after the French telecom operator reported third-quarter profit that was slightly ahead of market expectations, driven by a strong performance at its Africa and Middle East business.
Across the pond, Tesla (NASDAQ:) will be in focus after CEO Elon Musk forecast vehicle sales would grow by 20-30% next year, reassuring investors the EV manufacturer was improving its core electric vehicles business.
Crude rebounds on Middle East worries
Oil prices rose Thursday, rebounding after the previous session’s losses, on worries that an escalation of the conflict in the Middle East could impact supply from the key region.
By 03:05 ET, the contract climbed 1.1% to $75.80 per barrel, while futures (WTI) traded 1.3% higher at $71.66 per barrel.
Israel launched strikes on Syrian capital Damascus early on Thursday, according to the Syrian state media, threatening an expansion of the conflict in the region amid growing anticipation of a strike against Iran in retaliation for an October 1 attack.
Oil prices have gained nearly 4% so far this week, helping trim last week’s losses of than 7% on worries about Chinese demand and easing concerns about potential disruptions caused by fighting in the Middle East.
