European Stocks Rebound Sharply

European stocks closed sharply higher on Thursday amid strong GDP data and favorable corporate results. The Euro STOXX 50 rose 1.3% to 6,333 and the STOXX Europe 600 gained 0.6% to 649. The Eurozone GDP expanded by 0.4% in the second quarter, firmly above market expectations of 0.2% to reflect some resilience to soaring energy prices and sovereign yields in the period. Still, economic optimism was buffered by elevated EU-harmonized inflation rates, with pickups across Spain and Germany. Schneider Electric surged 10.8% after raising its full-year targets. BBVA climbed 5% after reporting an 11.4% increase in net profit. Also, ING rose more than 5% after posing their results, lifting other banks. On top of that, L'Oreal rose 2.7% after its earnings grew more than expected, and Ferrari maintained its slight gains after raising its guidance. On the downside, Adidas slumped 13.8% after its heavy marketing campaign around the FIFA World Cup triggered a surge in outlays.

European stocks rose further on Thursday amid strong GDP data and favorable corporate results. The Euro STOXX 50 added nearly 1% to 6,300 and the STOXX Europe 600 gained 0.7% to 649. The Eurozone GDP expanded by 0.4% in the second quarter, firmly above market expectations of 0.2% to reflect some resilience to soaring energy prices and sovereign yields in the period. Still, economic optimism was buffered by elevated EU-harmonized inflation rates, with pickups across Spain and Germany. Schneider Electric surged 9% after raising its full-year targets. BBVA climbed 3.5% after reporting an 11.4% increase in net profit. Also, ING rose more than 4% after posing their results, lifting other banks. Other banks also rallied. On top of that, L'Oreal rose 3% after its earnings grew more than expected, and Ferrari maintained its slight gains after raising its guidance. On the downside, Adidas slumped 16% after its heavy marketing campaign around the FIFA World Cup triggered a surge in outlays.

European stocks traded higher on Thursday, with the STOXX 50 adding 0.5% and the STOXX 600 gaining 0.4%, as corporate earnings remained the primary market driver. Investors also weighed additional US strikes on Iran, the resulting rise in oil prices, and the Fed's decision to leave interest rates unchanged for a fifth consecutive meeting on Wednesday. Markets also digested a fresh batch of economic data showing that France's economy rebounded in the Q2, while growth accelerated in Spain and the Netherlands. Meanwhile, Spain's inflation rate accelerated more than expected in July. Shell advanced 1.5% after reporting a sharp increase in profit, while L'Oréal gained 3% after posting better-than-expected quarterly sales. Schneider Electric surged 5.5% after raising its full-year targets, and BBVA climbed 2.2% after reporting an 11.4% increase in net profit. On the downside, Adidas slumped more than 16% after missing quarterly profit expectations.