Europe open: Stocks rise as miners, earnings provide a boost

European stocks rose in early trade, boosted by a strong showing in the mining sector and some well-received earnings.

At 0845 BST, the benchmark Stoxx Europe 600 index and Germany’s DAX were 0.4% higher, while France’s CAC 40 was up 0.3%.

Meanwhile, oil prices recovered, with West Texas Intermediate up 0.4% to $50.71 a barrel and Brent crude up 0.2% at $51.55.

Investors in Europe were looking ahead to the latest German Ifo survey at 0900 BST.

CMC Markets’ Michael Hewson said: “With the DAX near to its best levels this year, today’s focus will be on the latest German IFO business survey which enjoyed a decent rebound in September, after a soft August number. This September rebound is expected to be maintained in the October survey if yesterday’s decent PMI numbers are any indication, with a slight improvement to 109.60, from 109.50 expected. The DAX is also being helped by the recent weakness in the euro, in the last week or so, as it hit a six month low against an appreciating US dollar.”

In terms of sectors, basic resources led the gains, with the Stoxx 600 sub-index for the sector up 2.6% amid rising copper prices.

In corporate news, Banca Monte dei Paschi was in the black after announcing plans to cut 2,600 jobs, close 500 branches and sell bad debt.

Randstad was also a high riser after the Dutch recruiter posted a 9% jump in third-quarter adjusted earnings before interest, taxes and amortisation, beating analysts’ expectations.

Air Liquide advanced after saying third-quarter revenue was up 24%, boosted by its acquisition of Airgas Inc, while Orange rose after reporting an increase in third-quarter international sales.

Asset manager St James’s Place rallied after reporting a 21% rise in gross inflows for the latest three-month stretch to reach £2.8bn, with the political uncertainty after the referendum not having had any distinguishable impact on its day-to-day business.

On the downside, Switzerland’s Novartis slipped back despite reporting an increase in third-quarter net income, while aerospace and automotive engineering group GKN was also in the red after it posted slower growth and lower trading margins for the nine months to the end of September.

Whitbread also declined despite sprinkling a 5% dividend hike on a strong set of interim results, with Premier Inn accelerating in the second quarter to offset a slight softening from Costa.