BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks closed on a firm note on Wednesday, extending recent gains, as investors reacted positively to earnings updates from some top U.S. companies, and remained optimistic about growth despite the continued surge in coronvirus cases.
Top U.S. companies like Alphabet, Advanced Micro Devices and General Motors reported encouraging earnings results.
Google's Alphabet reported better-than-expected fourth-quarter earnings in after-hours trading.
Advanced Micro Devices forecast 2022 revenue above expectations and General Motors forecast earnings 'at or near record levels' in 2022 while Starbucks posted earnings that came in below analysts' expectations.
Investors also looked ahead to the monetary policy announcements from the European Central Bank and the Bank of England, due on Thursday.
The European Central Bank is unlikely to announce policy tightening anytime soon while investors await a second consecutive rate hike from the Bank of England.
Preliminary data from Eurostat showed Eurozone inflation accelerated further in January on energy prices. Inflation rose to a record 5.1% in January from 5% in December. Economists had forecast the rate to ease to 4.4%.
Meanwhile, core inflation that excludes energy, food, alcohol and tobacco, slowed to 2.3% from 2.6%. Nonetheless, this was above economists' forecast of 1.9%.
On a monthly basis, overall consumer prices gained 0.3% in January, while core consumer prices dropped 0.8%.
The pan European Stoxx 600 climbed 0.45%. The U.K.'s FTSE 100 surged up 0.63% and France's CAC 40 gained 0.22%, while the U.K.'s FTSE 100 edged down marginally and Switzerland's SMI ended flat.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Greece, Iceland, Ireland, Norway, Poland and Sweden ended higher.
Netherlands and Portugal edged up marginally, while Finland, Russia, Spain and Turkey closed weak.
In the UK market, Ocado Group climbed 5.7% after Credit Suisse upgraded its rating on the stock. Vodafone Group gained nearly 3.5% after reporting a rise in Q3 revenue and reaffirming its FY22 outlook.
Barratt Developments, Natwest Group, Auto Trader Group, Croda International, Rentokil Initial, ABRDN and Experian gained 2 to 2.6%.
ICP, Spirax-Sarco Engineering, Diageo, Airtel Africa Plc, Coca-Cola, Sage Group, Melrose Industries, Taylor Wimpey and Ashtead Group also ended sharply higher.
Antofagasta tumbled more than 5.5%. IAG, Fresnillo, Intercontinental Hotels Group, Rolls-Royce Holdings, JD Sports Fashion, BAE Systems, Kingfisher and Scottish Mortgage lost 1 to 2.2%.
In the German market, Symrise rallied 2.7%. Covestro and HeidelbergCement both gained about 2%. Siemens Healthineers, Deutsche Post, Adidas, Merck and Infineon Technologies advanced 1 to 1.5%.
TeamViewer jumped as much as 16.3% percent. The software company said its fourth quarter billings were up 20% from prior year, or up 17% in constant currency.
MTU Aero Engines declined 2.4%, Daimler shed 1.2% and Continental ended 1.1%.
In Paris, Essilor gained nearly 3%. Dassault Systemes, Publicis Groupe, CapGemini, Pernod Ricard, Teleperformance, Legrand, Danone, Kering, Veolia and Societe Generale closed higher by 1.5 to 2.3%.
Thales ended more than 3% down. Airbus Group, Sodexo, Carrefour, Unibail Rodamco, Michelin and BNP Paribas also ended notably lower.
In the Swiss market, shares of drug maker Novartis dropped 3% after its fourth-quarter operating income declined 3 percent despite higher sales. Lender Julius Baer slumped 5.7% despite posting a 55% rise in 2021 net profit and raising dividend.
Swedish industrial technology group Hexagon rallied 4.5% after posting record quarterly earnings. Swedbank plummeted more than 5% after reporting slightly worse than expected quarterly earnings.
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