Europe midday: Shares rise on US stimulus optimism
European shares extended gains by lunch on Friday as upbeat corporate news and a clearer picture of the US political landscape cheered investors.
The pan-European STOXX 600 index rose 0.6% on hopes a Democrat-controlled US Congress would see an increased Covid relief package. German shares were also higher, with the DAX up 0.75% on positive industrial output and export data.
In equity news, French catering and food services group Sodexo topped the gainers as the company lifted its first-half margin outlook for the first-half of 2021.
Swiss bank Credit Suisse fell 3.1% as it said it would post a fourth-quarter loss after setting aside an extra $850m (£625m) for litigation linked to residential mortgage-backed securities stretching back to the financial crisis.
Signature Aviation fell, having risen sharply on Thursday, after it confirmed it had received an approach from private equity firm Carlyle Investment Management regarding a possible offer for the company.
Food and clothing retailer Marks & Spencer was weaker after it reported a fall third-quarter revenue as it warned the latest UK Covid lockdown would hit sales and the Brexit trade deal “significantly impact” some of its European operations.
Like-for-like revenue in the 13 weeks to December 26 fell 7.6% to £2.5bn with a 4.4% rise on food sales over the festive period offset by a 24.1% slump in clothing and homewares.