European equities rose on Wednesday, as investors destroyed a mixed batch of purchasing executives and the share of sportswear and carmakers rose.
Stoxx Europe 600 index SXXP,
rose 1.1% to 361.58, after rising 0.2% on Tuesday. German DAX DAX,
climbed 1.4%, the French CAC PX1,
rose 1.6% and the FTSE 100 index UKX,
fell 0.1% against the dollar, while the pound was even weaker GBPUSD,
decreases 0.3%. The dollar strength can help European and British exporters by making their prices more competitive abroad.
IHS Markit flash Eurozone manufacturing in the euro area rose to 53.7 from 51.7, while PMI services fell to 47.6 from 51.9 in September. The composite PMI is just over 50, indicating a hit for the overall economy as coronavirus cases increased across the region. But there were some improvements in production.
Elsewhere, data from the GfK market research group showed that the German consumer sentiment will stabilize in October, following a sharp fall in September.
Investors continue to see an increase in coronavirus cases across Europe, with the Prime Minister of the United Kingdom Boris Johnson announcing new restrictions for the country on Tuesday. He spoke of “undoubtedly difficult months ahead” and warned that if people refuse to cooperate, the government will take further action.
Italy has reportedly closed its borders with France and says it will now require COVID-19 tests for these travelers.
Stock futures YM00,
was higher, reinforced by supportive comments from Federal Reserve Chairman Jerome Powell, who testified about Capital Hill over the central bank’s pandemic response. Powell will play a second time in DC on Wednesday. US PMI data is ahead, as are the appearances of other Fed speakers.
Shares in Nike,
collected 8% in late trading on Tuesday after the sportswear manufacturer blew past analysts’ forecasts for the quarter. Shares in adidas ADS,
shares received 4% and PUMA PUM,
increased by 3.9%.
Carmakers are also climbing, with shares of Peugeot UG,
rises above 3%. The company said it would buy back 10 million of its own shares from Dongfeng Motors. Otherwise, Renault increased by over 3%,