Europe open: Stocks push higher as cyclicals pace the advance

European stocks rose in early trade, taking their cue from positive sessions in the US and Asia as investors continued to mull the implications of Trump’s US presidential victory, with earnings releases providing some support.

At 0840 GMT, the benchmark Stoxx Europe 600 index and Germany’s DAX were up 1.3%, while France’s CAC 40 was 1.2% higher. Cyclicals paced the advance, with the Stoxx 600 sub-index for banks up 3.4% and the corresponding index for basic resources 3.3% stronger.

Meanwhile, oil prices advanced, with West Texas Intermediate up 0.4% to $45.46 a barrel and Brent crude 0.9% firmer at $46.77.

Lee Wild, head of equity strategy at Interactive Investor, said: “Well, this was billed by Trump as 'Brexit-plus-plus-plus', and he wasn't wrong. Parallels continue, as share prices mirror the boom in the aftermath of June's vote to leave the EU. Despite deep fears among outsiders and millions of protesting Americans about the harm a Trump presidency could do, money is flooding into equities.

“Perception now is that the controversial multi-billionaire TV presenter and property mogul could be good for business; and talk of tax cuts and heavy spending on infrastructure would certainly be good for growth. There'll be no wall along the Mexican border and most of Trump's daft policies will never see the light of day.

However, Wild cautioned: “What happens after this honeymoon period is less clear, and there's a sense that this is very much the calm before the storm. After talking the talk, he's gotta 'walk the walk', and Trump's unpredictability and long list of potential flash points pose a real danger to markets.”

In corporate news, Aegon NV surged after its third-quarter earnings beat expectations, while shares in France’s Vivendi also rose after better-than-expected quarterly results.

Zurich Insurance advanced after it posted a 342% rise in third-quarter net profit, and Zalando rallied after the online retailer said it swung to a profit in the third quarter.

Italian insurer Generali edged higher despite posting a small drop in net profit for the first nine months of the year.

Siemens racked up healthy gains as the German industrial conglomerate reported a 20% jump in net profit for the fiscal fourth quarter.

Broadcaster ITV gained as it said revenues pushed up in the third quarter but advertising revenues declined.

Continental fell after reporting a big slump in third-quarter net profit.

AstraZeneca was little changed after it said net profit in the third quarter rose 32% from the same period a year ago.

National Grid slipped as it posted a 64% drop in pre-tax profit for the first half, while Hikma Pharmaceuticals was also in the red despite saying it is currently generating “good” revenue growth and that it expects full-year revenue to rise by around 35% to $2bn at constant currency.