Europe midday: Retail and Healthcare issues pace gains
European stocks are holding onto slight gains buoyed by gains in the retail space following strong results at H&M.
A raft of better than expected economic data out of the People's Republic of China was adding to the positive vibe.
"Stock markets continue to make gains, after US markets came storming back yesterday after a difficult first half of September," said IG chief market analyst Chris Beauchamp.
"A light economic calendar ahead gives equities the space to make further gains, although we can expect momentum to stall as we near the FOMC decision tomorrow."
The pan-European STOXX 600 index was up 0.73% at 371.19, alongside a 0.14% rise for the German Dax to 13,211.68, while the Spanish Ibex 35 was climbing 1.41% to 7,049.4.
Pacing gains at the sector level were Retail (2.18%), Healthcare (1.79%) and Basic Resources (1.71%), with the latter benefitting from stronger than expected readings for Chinese retail sales and industrial production in August.
H&M reported better-than-expected preliminary third quarter pre-tax profit of SEK2bn it recovered quickly from the coronavirus hit to sales.
Ocado shares were up after the company reported a 52% surge in third quarter revenue as its retail unit joint venture switched to Marks & Spencer from Waitrose. M&S shares were also higher on the news.
Fiat Chrysler shares were also higher while Peugeot stock fell after the two car manufacturers restructured the terms of their planned merger to save cash with Fiat Chrysler shareholders receiving a smaller dividend.
The two companies, which are set to merge into Stellantis, the world's fourth-largest carmaker, said in a joint statement late on Monday that FCA would cut the cash element of a €5.5bn special dividend to €2.9bn.
Peugeot said it would in turn postpone the planned spinoff of its 46% stake in parts maker Faurecia until after the merger and extend it to all shareholders of the new group. Faurecia shares slumped by more than 7% on the news.
William Hill shares surged after the bookmaker said a multi-year deal between its US partner Caesars Entertainment and broadcaster ESPN will feature its sports betting apps and sports book odds. Flutter Entertainment and GVC were also trading up.