European shares hit report highs on well being features, miners weigh in

© Reuters. FILE PHOTO: The graphic of the German stock index DAX is shown on October 29, 2021 on the Frankfurt Stock Exchange. REUTERS / employees

By Anisha Sircar and Ambar Warrick

(Reuters) – European stocks climbed to record highs Tuesday as a strong outlook from hearing aid maker Demant supported healthcare stocks, despite broader gains stifled by losses in miners and the prospect of major central bank meetings.

The pan-European index closed at 479.71 points, 0.1% higher, with health stocks leading the price gains with an increase of 1.3%. Denmark's Demant was among the top performers in the sector after unexpectedly increasing its profit forecast for the year.

Mining stocks lost 2.9% on a slump in iron ore and prices as loose supply conditions and poor demand outlook for China rocked metal markets. (IRON ORE /)

Antofagasta (LON 🙂 and ArcelorMittal (NYSE 🙂 SA were among the worst performers in the sector.

The STOXX 600 closed at a record high on Monday, carrying strong gains from October on positive gains and a surge in bank stocks fueled by expectations of a rate hike by the European Central Bank next year.

"The environment of higher inflation and higher returns favors certain companies, but it is uncertain for others what will leave you in a very volatile market," said Bert Colijn, senior economist at ING.

"But the underlying moves are positive, with better-than-expected GDP numbers and a faster-than-expected recovery."

According to Refinitiv IBES data, around 166 STOXX 600 companies have reported quarterly earnings to date and 65.7% have exceeded earnings estimates. In a typical quarter, 52% exceeded estimates.

The focus is now on a decision by the Fed on when it plans to reduce its massive stimulus measures, as well as a decision by the Bank of England later this week. Both banks are expected to outline measures to contain the recent spike in inflation.

A survey found that manufacturing activity in the eurozone remained strong in October, but supply chain bottlenecks and logistical problems spiked production costs and slowed growth.

On a stock-by-stock basis, HelloFresh meal set delivery service rose 17.3% after raising its sales forecast for 2021.

The UK blue chip weighed 7.7% on the world's largest online betting group, Flutter Entertainment, after it cut its annual forecast due to poor sports results and a temporary shutdown of its Dutch operations.

London-based Standard Chartered (OTC 🙂 slumped 7.8% despite reporting earnings doubling for the third quarter. The bank said it had $ 4.2 billion exposure to China's real estate sector, where the China Evergrande Group is grappling with a huge mountain of debt.

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