European Shares Edge Higher On Strong Factory Data

European stocks rose on Monday as upbeat manufacturing data from China and the euro zone raised hopes of a swift economic recovery from the coronavirus pandemic.

The upside, however, remained capped by uncertainty surrounding the outcome of Tuesday’s presidential election in the United States.

The manufacturing sector in China continued to expand in October, and at a faster rate, the latest survey from Caixin revealed with a manufacturing PMI score of 53.6, up from 53.0 in September.

The euro area manufacturing sector gained further strength in October driven by acceleration in production and new orders, final survey results from IHS Markit showed.

The manufacturing Purchasing Managers’ Index rose to 54.8 in October from 53.7 in September. The flash score was 54.4.

The pan European Stoxx 600 rose 0.8 percent to 345.19 after closing 0.2 percent higher on Friday. The German DAX climbed 1.4 percent, France’s CAC 40 index rallied 1.2 percent and the U.K.’s FTSE 100 was up 0.8 percent.

Swiss drug maker Roche Holding gained 1.3 percent after reporting a 1 percent rise in third-quarter sales. The company said pharmaceuticals sales will probably recover in the fourth quarter.

Travel-related stocks were moving lower as England goes into second lockdown for one month.

British Airways parent IAG fell 1.7 percent, budget airline EasyJet tumbled 3 percent and engine maker Rolls-Royce lost 2 percent.

Primark owner Associated British Foods declined 1.5 percent. The company warned its budget clothing chain faces a massive £375 million loss of sales due to store closures amid new Covid-19 lockdowns across Europe.

Ladbrokes owner GVC lost 1.7 percent after a warning that the imminent four-week lockdown in the U.K. will cost the company an estimated £37 million.

Outsourcer Serco slumped 14 percent after it lost a Ministry of Defense contract to provide nuclear warheads.

Online supermarket Ocado surged 9 percent after lifting its FY EBITDA guidance.

Food delivery group Just Eat Takeaway jumped 3.5 percent on expectations of a surge in demand once the second lockdown takes effect this week.

French healthcare group Sanofi climbed 4.4 percent after it offered to buy Dutch biotechnology company Kiadis for 308 million euros ($358.4 million).

Shares of Franco-Dutch airline holding company Air France KLM were up nearly 6 percent as oil prices fell about 4 percent to a five-month low on worries that widening coronavirus lockdowns in Europe would weaken fuel demand.

German medical-equipment maker Siemens Healthineers was moving higher despite reporting a fall in fourth-quarter revenue and profit.

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