4:00 PM Frankfurt – European markets rallied on the strengthened expectations of additional stimulus steps. Cable & Wireless soared on a merger offer of £3.6 billion from Liberty Global. easyJet profit jumped 22%. United Internet profit and revenues advanced.
European stocks rallied on Tuesday following a recovery of travel and leisure stocks and strength in the defence sector due to expectations for higher government spending.
Positive company updates and the Greece’s deal with international lenders also contributed to the positive sentiment.
In London trading, FTSE 100 index jumped 114.36 or 1.9% to 6,260.47 and in Frankfurt the DAX index advanced 208.82 or 1.9% to 10,921.62.
In Paris, CAC 40 index soared 114.21 or 2.4% to 4,918.52.
Investors expect more stimulus from the European Central Bank after comments from Peter Praet, the ECB''s chief economist, reinforced the view that the bank will take action to boost the economy, in the environment of growing uncertainty.
Greece achieved preliminary deal with its international lenders on home foreclosures reform, thus easing the stalemate in its bailout program.
October inflation index in the UK were down 0.1%, compared to the same month a year ago, and were flat compared to September.
Prices of clothing, footwear, and recreational goods increased slightly, according to the Office of National Statistics.
Separately, the department said UK producer prices index for all manufactured products declined 1.3% in October from the 1.8% decline in September.
surged 11.3% to 554.47 pence after the U.K.-based heat treatments products maker said it is on track to meet full year profit expectations, despite a decline in revenues.
Bodycote forecasted operating profit for the year ending in December to remain n the range of £101 million to £106 million.
Group revenues for the four-month period ending in October declined 9.7% at actual exchange rates and 7.5% at constant exchange rates.
The company that its added aerospace, defense and energy business revenues plunged 11.9% at constant exchange rates.
Big Yellow Group
fell 0.7% to 742 pence after the U.K.-based self- storage and services provider stated revenues for the six months ending in September soared 26% from a year ago to £50.2 million.
Profit in the period surged 69% from a year ago to £59.4 million and diluted earnings per share rose to 38 pence from 24.9 pence.
The interim dividend was increased 16% from the same period a year ago to 12.1 pence per share.
B&M European Value Retail S.A
slumped 4.5% to 305.10 pence despite the announcement that revenues in the first-half ending in September surged 26% from year ago to £930.3 million.
Net in the period swung to profit of £51.9 million compared to a loss of £20.7 million a year ago. Diluted earnings per share improved to 5.2 pence, compared to a loss of 2.1 pence per share for the same period last year.
The U.K-based retailer, which currently operates 450 stores in the U.K. Germany, plans to open additional 50 new stores in next year.
declined 4.2% to 1,709 pence after the U.K.-based low-cost airline reported revenues in the year ending in September jumped 3.5% from year ago to £4.67 billion.
Profit in the year soared 21.8% from a year ago to £548 million compared to £450 million and diluted earnings per share increased to 138 pence from 113.2 pence.
The discount airline forecasted the fuel bill for the fiscal 2016 to decline between £140 million and £160 million.
The company also doesn’t expect any lasting impact on its business following the recent terrorist attacks.
Liberty Global Plc
, the international video, broadband, telephony and mobile services provider, offered to acquire smaller rival Cable & Wireless Communications Plc
for £3.6 billion in stock and a special dividend.
The acquisition is part of the company’s efforts to expand its reach in the Latin America and the Caribbean.
The transaction is expected to close in the second quarter of 2016.
Cable and Wireless Communications Plc stock soared 6.7% to 78.71 pence on the news.
United Internet AG
gained 1.9% to €47.60 after the Germany-based internet service provider said sales in the nine-month ending in September advanced 46.1% from a year ago to €2.76 billion.
Profit in the period jumped 25% from a year ago to €392 million and earnings per share rose to €1.34 from €1.08 in the previous year.