The European stock markets experienced a notable upswing on Thursday, with the Stoxx Europe 600 climbing 1.19%. The Swiss Market Index saw an increase of 0.50%, while France’s CAC soared by 2.33%. The FTSE in London rose 0.20%, and Germany’s DAX advanced by 1.59%, reflecting a positive trading atmosphere across Europe. In Germany, consumer sentiment displayed signs of recovery in September, rebounding slightly after a significant decline the previous month.
According to the GfK Consumer Climate index, it rose by 0.7 points to reach -21.9 points. Meanwhile, in Italy, the consumer confidence index saw an improvement, rising to 98.3 in September, up from 96.1 in August. The Italian National Institute of Statistics noted that this boost was evenly spread across the various components of the index. The luxury goods sector enjoyed a rally following China's announcement of a new economic stimulus package.
Prominent luxury brands such as Kering, Louis Vuitton, and Hermes International each recorded gains exceeding 9% in Paris. Other notable performers included L’Oréal, which rose by 7%, and Pernod Ricard, experiencing a 5.7% uptick. Burberry also noted an increase of nearly 9% in London. In the mining sector, stocks surged as well, with Antofagasta and Anglo American rising by 6.3% and 5.9%, respectively, in London.
Glencore and Rio Tinto followed suit, gaining 4.9% and 3.6%. ArcelorMittal also had a positive day in Paris, with shares climbing by 4.7%. In corporate developments, Germany’s Commerzbank announced on Wednesday that its acting Chief Executive Manfred Knof will be stepping down on September 30. This comes just a day after the bank’s top management appointed Bettina Orlopp as his successor.
Earlier in September, Knof had indicated that he was not interested in seeking a second term. Following this news, Commerzbank shares closed 6.9% higher in Frankfurt. British pharmaceutical giant AstraZeneca disclosed on Thursday that the US Food and Drug Administration has granted approval for Tagrisso, a treatment for adult patients with a particular type of non-small cell lung cancer that remains unprogressed after receiving platinum-based chemoradiation therapy.
AstraZeneca's stock reflected this positive news with a rise of 1.3% in London. Meanwhile, Meta Platforms’ proposed investment in Italian-French eyeglasses manufacturer EssilorLuxottica was characterized by CEO Mark Zuckerberg as “more of a symbolic” gesture aimed at fostering a long-term partnership.
He elaborated that EssilorLuxottica is poised to transition from being the leading glasses company to becoming a significant player in the technology sector. The shares of EssilorLuxottica rose by 1.3% in Paris following this statement. In a collaboration announcement, German biotech firm Evotec and Danish pharmaceutical company Novo Nordisk revealed their partnership aimed at developing ready-to-use cell therapies for potential commercialization.
Although the financial terms of the collaboration were undisclosed, Novo Nordisk committed to funding Evotec’s research and development facility in Göttingen, Germany, along with its cell therapy production site in Modena, Italy. In energy news, French energy corporation TotalEnergies, Norwegian oil refiner Equinor, and British oil and gas firm Shell confirmed the completion of CO2 receiving and storage facilities for the Northern Lights joint venture in Norway.
TotalEnergies noted that the project, which encompasses a terminal, a 100 km subsea pipeline, and CO2 injection facilities, is slated to begin its CO2 injection phase in 2025. However, shares of Shell and TotalEnergies declined, falling by 4.6% and 2.3% in London and Paris trading, respectively, amid decreasing oil prices. Danish biotech company Evaxion Biotech also made headlines on Thursday, announcing that it granted US pharmaceutical leader Merck an option to exclusively license two preclinical vaccine candidates, named EVX-B2 and EVX-B3.
Evaxion is set to receive an upfront payment of $3.2 million, with potential additional earnings of up to $10 million in 2025 if Merck decides to exercise the licensing option for either or both candidates..