European index closes session loaded with balance sheets sharply higher

The pan-European STOXX 600 index closed at a nearly seven-week high on Thursday, buoyed by a series of upbeat earnings from companies including Moncler and Ipsen, while dismal U.S. gross domestic product (GDP) data eased. concerns about the future pace of interest rate increases in the country.

The STOXX 600 closed up 1.09% at 432.77 points and advanced for a second straight day, with Ipsen shares soaring 16.2% after the biopharmaceutical group posted strong results and raised its outlook.

Luxury stocks were boosted by jacket maker Moncler, which had better-than-expected sales. The company gained 8%, while owner LVMH rose 4.2%, providing the most strength to the STOXX 600.

However, Spain’s IBEX 35 index tumbled after the euro zone’s second-biggest creditor, Santander, fell as it missed earnings estimates.

Meanwhile, data across the Atlantic showed the US economy unexpectedly contracted in the second quarter, fueling concerns of a recession.

The STOXX 600 has been losing ground this year as investors priced in a blow to corporate profits on fears that aggressive attempts by central banks to rein in rising inflation will send economies into recession. The energy crisis in Europe, fueled by the war between Russia and Ukraine, has intensified concerns.

• In London, the Financial Times index dropped 0.04%, to 7,345.25 points;
• In Frankfurt, the DAX index rose 0.88% to 13,282.11 points;
• In Paris, the CAC-40 index gained 1.30% to 6,339.21 points;
• In Milan, the Ftse/Mib index appreciated by 2.10%, at 21,932.06 points;
• In Madrid, the Ibex-35 index registered a drop of 0.49%, to 8,084.90 points;
• In Lisbon, the PSI20 index rose by 0.72%, to 6,160.72 points.