Europe close: Traders focus on positives of latest political news out of UK

European shares gained on Thursday, with traders unfazed - somewhat upbeat even - by the UK Prime Minister's decision to step down.

IG chief market analyst Chris Beauchamp credited positive corporate updates in the US and "hints" that the Federal Reserve might be nearer the end of its rate hiking cycle, rather than the beginning, for the move.

On Liz Truss's resignation, Beauchamp pointed out how - ironically - it in fact cemented Jeremy Hunt as Chancellor with the new fiscal plans likely to stick regardless of who was at the driver's wheel.

"The government (whoever leads it) looks determined to repair Britain’s shaky position in the eyes of financial markets."

Against that backdrop, Britain's FTSE 100 was up 0.27% to 6,943.91 alongside Gilt yields that were little changed and a slightly stronger pound.

The latter added 0.33% to 1.1256, albeit having earlier climbed to 1.1336.

The pan-European Stoxx 600 was up 0.25% at 398.71.

France’s CAC-40 outperformed with a 0.76% rise to 6,086.90 while the FTSE Mib put on 1.07% to 21,701.50.

Euro/dollar meanwhile edged higher by 0.26% to 0.9798.

As an aside, reports emerged during the session according to which officials in Beijing were debating easing Covid-19 rules, a potentially large positive for global markets if proven correct.

In equity news, shares in telecoms giant Ericsson fell 15% after weaker-than-expected earnings.

Rival Nokia fell 8% after the Finnish telecom equipment maker's quarterly operating profit missed analysts' expectations. Meanwhile Nordic Semiconductor slumped after a downbeat earnings report.

Luxury goods maker Hermes gained 2% after the company saw sharp rise in sales growth with no signs of a slowdown and Swedish Match rose after Philip Morris International raised its buyout offer for the nicotine products maker.