BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The European markets got off to a weak start Thursday, following two days of losses. However, the markets managed to bounce back after the first few hours of trade and climbed for the rest of the session.
Traders have shifted their focus away from U.S. tax reform, now that the bill has passed both houses of Congress, to the election in Catalonia. Given the uncertainty that has plagued the region over the issue of independence in recent months, investors are hopeful that the election for regional assembly will result in a clear majority for one side or the other.
The pan-European Stoxx Europe 600 index advanced 0.56 percent. The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.51 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.76 percent.
The DAX of Germany climbed 0.31 percent and the CAC 40 of France rose 0.62 percent. The FTSE 100 of the U.K. gained 1.05 percent and the SMI of Switzerland finished higher by 1.18 percent.
In Frankfurt, troubled furniture retailer Steinhoff rose 1.33 percent, recovering slightly from its recent losses.
In London, homebuilding stocks fell on concerns over the Brexit effect on the economy after industry data showed that U.K. car output decreased 4.6 percent year-on-year in November in the wake of deteriorating consumer sentiment.
Berkeley Group dropped 0.95 percent, Persimmon shed 0.77 percent and Barratt Developments declined 0.16 percent.
McCarthy & Stone sank 9.49 percent after the government proposed to cut controversial ground rents on new long leases to zero.
Balfour Beatty climbed 2.02 percent. The infrastructure group has reached an agreement with funds managed by Dalmore Capital Limited to sell a 12.5 percent stake in Connect Plus, the company which operates the M25 orbital motorway.
Intercontinental Hotels Group rose 2.11 percent. The company said that the enacted U.S. Tax Cuts and Job Acts Bill will reduce its group effective tax rate by mid to high single digit percentage points from 1 January 2018.
Nokia increased 3.98 percent in Helsinki. The telecoms equipment group has signed a multi-year patent license agreement with China's Huawei.
French manufacturing confidence declined unexpectedly in December, survey results from the statistical office Insee showed Thursday.
The business climate in manufacturing remained very favorable in December, although the composite index dropped to 112 from 113 in November.
Meanwhile, economists had expected the index to remain stable at 113.
The UK budget balance showed its smallest November deficit in a decade, largely due to higher tax income.
Public sector net borrowing excluding public sector banks, decreased GBP 0.2 billion to GBP 8.7 billion in November, data from the Office for National Statistics showed Thursday.
This was the lowest November net borrowing since 2007. The expected level was GBP 9 billion.
UK consumer confidence fell to a four-year low in December as Brexit uncertainty, higher inflation and interest rate hike by the Bank of England weighed on the assessment of personal finance, survey data from GfK showed Thursday.
The survey suggested that the confidence level is set to drop further next year.
The consumer confidence index dropped one point to -13, the lowest since December 2013. The score was forecast to remain at -12.
Economic activity in the U.S. unexpectedly grew at a slightly slower than previously estimated rate in the third quarter, according to a report released by the Commerce Department on Thursday. The report said real gross domestic product surged up by 3.2 percent in the third quarter compared to the previously estimated 3.3 percent jump. Economists had expected the pace of growth to be unrevised.
A report released by the Labor Department on Thursday showed a bigger than expected increase in first-time claims for U.S. unemployment benefits in the week ended December 16th. The report said initial jobless claims climbed to 245,000, an increase of 20,000 from the previous week's unrevised level of 225,000. Economists had expected jobless claims to rise to 234,000.
After reporting a bigger than expected slowdown in the pace of growth in regional manufacturing activity in the previous month, the Federal Reserve Bank of Philadelphia released a report on Thursday showing the pace of growth unexpectedly rebounded in the month of December.
The Philly Fed said its diffusion index for current general activity climbed to 26.2 in December from 22.7 in November, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to drop to 21.5.
Suggesting solid economic growth will continue into the first half of 2018, the Conference Board released a report on Thursday showing a slightly bigger than increase by its index of leading U.S. economic indicators in the month of November.
The Conference Board said its leading economic index climbed by 0.4 percent in November after jumping by 1.2 percent in October. Economists had expected the index to rise by 0.3 percent.
Copyright RTT News/dpa-AFX