European shares opened higher on Wednesday as investors digested a mixed bag of corporate earnings news.
The pan-European Stoxx 600 index was up 0.14% in early deals as Asian and US markets closed higher overnight. UK shares were flat as inflation fell unexpectedly in September, but traders were still factoring in an early rise in interest rates next month.
September inflation fell back to 3.1% from 3.2% in August September despite the rising cost of fuel and transport, according to official data and still well above the Bank of England’s target of 2%.
“The latest numbers don’t include the petrol pump crisis or the most recent surge in energy prices, or indeed the knock on effects across the economy, so inflation will still get worse before it gets better,” said AJ Bell analyst Laith Khalaf.
In equity news French luxury goods maker Kering fell 4.6% as sales growth at its fashion brand Gucci missed analysts’ expectations due to a sharp slowdown in the pace of its post-Covid recovery, particularly in Asia.
Shares in its French rival LVMH and Hermes also fell on the news.
ASML Holdings, which supplies computer chip, fell 1.73% despite posting slightly better-than-expected quarterly results.
Dutch paints and coatings maker Akzo Nobel fell 1.61% as quarterly earnings were hit by continued raw material inflation and supply chain disruptions, which it expects to continue through mid-2022.
Shares in Swiss food giant Nestle rose 3.6% after the company lifted its sales outlook after strong coffee sales and price hikes pushed organic sales 6.5% higher in the third quarter.
Roche shares fell, despite the Swiss drugmaker posting an 8% rise in nine-month revenues, powered by demand for Covid-19 tests, and lifted guidance.
Deliveroo shares rose as the online food delivery firm reported a 58% rise in order values for the third quarter.
Miners were weaker as metals prices fell, with Antofagasta, Rio Tinto, BHP, Anglo American and Glencore all lower.
