European shares hovered just below record territory levels at midday on Thursday as investors digested signals from the US Federal Reserve that it would not rush interest rate rises, and prepared for a policy decision from the Bank of England.
The pan-European Stoxx jumped 0.47% amid a deluge of corporate earnings with all major bourses higher after the Fed said it would begin scaling back its monthly bond purchases in November with plans to end them next year.
In economic news, growth in the Eurozone hit a six-month low in October, a widely-watched survey showed on Thursday, as supply issues and rising Covid-19 cases hampered the recovery.
The IHS Markit Eurozone PMI composite output index fell to 54.2 last month, compared to 56.2 in September. It was the lowest reading for six months, and the third successive slowdown following a 15-year high in July. It was also marginally below consensus, for 54.3.
Both manufacturers and service providers reported a slowdown, with the IHS Markit Eurozone PMI services business activity index hitting a six-month low of 54.6, against 56.4 in September.
In corporate news, Danish business services group ISS was up 6% as the company said about two thirds of its largest customers are now allowing about half of workforces to return to offices, up from only 10% at the end of July.
BT shares were up as the telecoms provider reported a fall in interim profits due to higher finance costs and partially offset by a rise in adjusted core earnings, but reaffirmed its outlook for 2022 and resumed dividend payments.
IMI stock gained 6.8% as the specialist engineer lifted earnings guidance after a better-than-expected third-quarter performance, but warned of exchange rate headwinds for the full year.
JD Sports gained even as the Competition and Markets Authority ordered it to sell Footasylum after an in-depth investigation identified competition concerns.
Tate & Lyle was up after it reported a rise in first-half profit and revenue following a particularly strong performance in the food & beverage solutions business.
Luxury car maker Aston Martin advanced after it backed its full-year guidance and reported a jump in revenue and a narrowing of its losses amid strong demand for cars such as its DBX.
On the downside, Sainsbury’s fell even as it stuck to its full-year guidance and reported a 23% increase in first-half profit, boosted by higher grocery sales and cost cuts.
Virgin Money fell 4.45% despite reinstating its dividend as earnings recovered from the Covid-19 pandemic, with the challenger bank setting new medium-term growth targets for margins and cost savings.
