BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European markets ended higher on Wednesday, extending recent gains, amid reports that some breakthroughs have been made in the developments of treatments for the coronavirus.
Some positive surprises on the economic front too contributed to the positive close of European stocks.
The pan European Stoxx 600 climbed 1.23%. Germany's DAX ended up 1.48%, France's CAC 40 gained 0.85% and the U.K.'s FTSE 100 gained 0.57%, while Switzerland's SMI spurted 1.79%.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain and Sweden ended with sharp to moderate gains. Turkey and Ukrain ended modestly higher.
In the U.K. market, Smurfit Kappa gained nearly 7% after the company reported strong earnings for the year 2019 and increased its payout. Smith DS, Mondi and Informa also ended with impressive gains.
Imperial Brands shares declined sharply after the company issued a profit warning.
In France, Credit Agricole ended nearly 4% up. STMicroElectronics, Societe Generale, Peugeot, Accor, Vinci, Schneider Electric, Technip, Sanofi, Air Liquide, ArcelorMittal and Bouygues gained 1.4 to 3%.
BNP Paribas edged higher after the bank posted better than expected earnings in the fourth quarter.
In the German market, Infineon soared nearly 11% after results came in line with expectations and the company cofirmed future earnings guidance.
Continental, Daimler, Lufthansa, Merck, Bayer, Volkswagen, Allianz, Fresenius, HeidelbergCement, SAP, BASF, Deutsche Post and Deutsche Bank gained 1.2 to 4%.
In economic news, the euro area private sector expanded at the strongest pace in five months in January, final survey data from IHS Markit showed. The final composite output index rose to 51.3 in January from 50.9 in December. According to flash estimate, the index score was unchanged at 50.9.
The services Purchasing Managers' Index dropped to 52.5 from 52.8 in December. The flash estimate was 52.2.
Eurozone retail sales declined more than expected in December on weak food and non-food product sales. Data from Eurostat revealed retail turnover declined 1.6% in December from November, when it was up 0.8%. Economists had forecast a 1.1% drop.
The UK service sector rebounded at a faster-than-estimated pace in January driven by rising client demand after general election, final survey results from IHS Markit and Chartered Institute of Procurement & Supply showed. The report said the services Purchasing Managers' Index rose to 53.9 in January from 50.0 in December. The reading exceeded the flash estimate of 52.9.
Swiss consumer confidence improved in the first quarter as households were more positive about economic situation and labor market, survey results from the State Secretariat for Economic Affairs, or SECO, showed Wednesday.
The consumer sentiment index rose to -9.4 in the first quarter from -10.3 in the preceding period.
A report from Reuters cites a Chinese TV report indicating a research team at Zhejiang University has found an effective drug to treat people with the new virus.
Sky News also reported that a leading British scientist has made a significant breakthrough in the race for a coronavirus vaccine by reducing a part of the normal development time from 'two to three years to just fourteen days.'
Markets largely ignored the response to the reports by the World Health Organization, which stated there are 'no known' treatments against the virus.
'There are no known effective therapeutics against this 2019-nCoV and WHO recommends enrollment into a randomized controlled trial to test efficacy and safety,' the WHO said in a statement.
The agency added, 'A master global clinical trial protocol for research and prioritization of therapeutics is ongoing at the WHO.'
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