European Shares Extend Gains On UK Policy Reversal

European stocks rose for a fourth straight session on Tuesday after the United Kingdom government reversed nearly all the tax cuts and a survey showed German economic sentiment improved in October.

Regional markets, however, came off their day’s highs after the Bank of England disputed a report that it will further delay its quantitative tightening program.
The pan European Stoxx 600 was up 0.4 percent at 400.13, extending gains for a fourth day.

The German DAX climbed 1.2 percent, France’s CAC 40 index added 0.6 percent and the U.K.’s FTSE 100 was up half a percent.

Tech stocks led the surge, with Infineon Technologies, ASML Holdings and BE Semiconductor rising 1-3 percent.

Shares of Lookers Plc surged 6.5 percent after the British automotive retail and service group said it now expects underlying profit before tax for 2022 to be ahead of its previous expectations following strong trading in its third quarter.

Rio Tinto dropped 1 percent after the mining giant projected annual iron ore shipments at the lower end of its forecast.

Housebuilders declined, with Bellway falling 1.2 percent after it warned of a potentially shrinking market.

French spirits giant Pernod Ricard gained 1 percent after it has struck an agreement to acquire a majority shareholding of Co´digo 1530 Tequila.

Publicis Groupe rose nearly 2 percent. The world’s third-biggest advertising group raised its 2022 guidance once again after posting better-than-expected Q3 organic revenue growth.

Automakers BMW, Volkswagen, Mercedes-Benz Group and Renault added 1-3 percent after industry data showed Europe’s new car registrations increased for the second straight month in September.

New passenger car registrations grew 9.6 percent on a yearly basis, following August’s 4.4 percent increase, according to data published by the European Manufacturer’s Association. This was the second consecutive increase in sale.

Pfeiffer Vacuum, a German manufacturer of vacuum pumps, soared more than 12 percent after its preliminary group sales for the first nine months of 2022 increased 16.2 percent.

Swiss drug maker Roche dropped 1.3 percent after posting a 6 percent decline in quarterly sales.

Sweden’s Avanza Bank soared 12 percent after reporting better-than-expected third-quarter earnings.

Credit Suisse gained almost 2 percent on reports that the Swiss banking giant has turned to Middle Eastern sovereign wealth funds for a capital injection.

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