European stocks close higher; Lisbon is the exception

European stocks closed higher on Friday (4) on the back of renewed rumors about a possible easing of rigid policy against Covid-19 in China. The exception was Lisbon, which closed lower.

In London, mining stocks jumped in this session. Advancement in New York also served as a benchmark, following US jobs data for the month of October. Still, balance sheets of large companies also contributed to the risk appetite on the part of investors.

Paris’ CAC 40 closed up 2.77% to 6,416.44 points, and Frankfurt’s DAX rose 2.51% to 13,459.85 points. The pan-European Stoxx 600 index closed up 1.81% at 416.98 points.

This Friday, Société Générale (+2.55%) reported that it reported a net profit of 1.50 billion euros (US$ 1.46 billion) in the third quarter of this year. The figure came above the forecast of analysts consulted by FactSet, of 1.05 billion euros, but still below the result of 1.60 billion euros for the same period in 2021.

On the other hand, Telefónica reported this Friday a drop in its net profit, to 460 million euros, in the third quarter. In the same period in 2021, it had been 706 million euros. Still, the company’s share rose 3.39%. In Madrid, the IBEX 35 rose 0.94% to 7,942.70 points.

In Milan, the FTSE MIB rose 2.54% to 23,282.46 points, while in Lisbon, the PSI 20 dropped 0.07% to 5,734.96 points.

In China, rumors of a possible easing of the rigid anti-covid policy were well absorbed by investors.

Still, an announcement that an American audit of Chinese companies would have ended ahead of schedule was seen as a positive sign on the US stock market, which would have helped to encourage investors with an appetite for risk.

In the wake of Wall Street, European stocks also strengthened with data from the payroll of the United States, which showed job creation and higher than expected unemployment rates.

Basic and precious metals also appreciated after the release of the US payroll and influenced the results in Europe. Among the highlights, on the London Stock Exchange — whose FTSE 100 index rose 2.03% to 7,334.84 points — Anglo American closed with gains of 11.13%, Antofagasta advanced 6.86% and Rio Tinto shot up 7 .59%.

With an eye on upcoming decisions by the European Central Bank (ECB), investors followed speeches by the president of the institution, Christine Lagarde, who said this Friday that the BC “cannot and will not allow” high inflation to become entrenched in the euro zone.

According to her, there is an “unprecedented” shock in supply and demand in the region.

On the other hand, ECB Vice President Luis de Guindos said this Friday that the euro zone must seek a balance between energy security and price stability, as the increase in energy prices has been the main impetus for the eurozone inflation.