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European stocks ended broadly higher on Wednesday with investors focusing on earnings reports, updates about progress in vaccination programme, and political developments in Italy.<\/p>\n
In Italy, stocks moved higher, reacting to news that former European Central Bank President Mario Draghi will form a new unity government in the country.<\/p>\n
The pan European Stoxx 600 ended up 0.33%. Germany’s DAX advanced 0.71%, the U.K.’s FTSE 100 edged down 0.14% and France’s CAC 40 ended flat. Switzerland’s SMI ended lower by 0.26%.<\/p>\n
Among other markets<\/span> in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Portugal, Spain, Sweden and Turkey closed higher. Iceland ended flat, while Poland and Russia drifted lower.<\/p>\n In the UK market, Vodafone gained nearly 6% after re-affirming its earnings targets. Aviva rallied 3.7% and M&G gained 2.3%. BT Group, Royal Dutch Shell, Ocado Group, Persimmon, Scottish Mortgage, BP, Barclays, WPP and Schrodders also ended with strong gains.<\/p>\n Glencore fell after the company said its copper and cobalt production fell in 2020. However, the stock recovered well to end the day with a gain of nearly 1%.<\/p>\n On the other hand, GlaxoSmithKline shares lost more than 6% after the company reported a near 50% drop in fourth-quarter net profits and said it expects profits to fall this year amid higher research costs.<\/p>\n Rolls-Royce Holdings, Melrose, Diageo and Hikma Pharmaceuticals also declined sharply.<\/p>\n In the French market, Publicis Groupe shares moved up sharply after the company reported better-than-expected organic growth in the fourth quarter. The company said that it will hand back all of the salary reductions that 6,000 higher-earning staff voluntarily took during the worst of the coronavirus<\/span> downturn.<\/p>\n Renault gained more than 4.5%. Engie, Michelin, Valeo, Veolia, Airbus, Saint Gobain and Safran also closed on a positive note.<\/p>\n In Germany, Daimler gained more than 8%. Volkswagen gained nearly 2.5%, while Siemens, Deutsche Telekom, Lufthansa, Continental, Covestro and BASF ended higher by 1 to 2%.<\/p>\n Thyssenkrupp, Deutsche Wohnen, Adidas, Fresenius Medical Care and Fresenius ended lower by 1 to 2.3%.<\/p>\n In economic releases, the euro area private sector contracted further in January amid the Covid-19 pandemic as the decline in services was only partially offset by the growth in manufacturing sector, final survey results from IHS Markit showed.<\/p>\n The final composite output index dropped to 47.8 in January from 49.1 in the previous month but was above the flash score of 47.5.<\/p>\n Eurozone consumer prices increased for the first time in six months in January, flash data from Eurostat showed. The harmonized index of consumer prices climbed 0.9% year-on-year in January, reversing a 0.3% fall in December. Economists had forecast an annual growth of 0.5%.<\/p>\n The UK service sector contracted at the fastest pace in eight months in January due to the impact of restrictions related to the Covid-19 pandemic on trade and temporary business<\/span> closures amid the third national lockdown, final survey results from IHS Markit showed Wednesday.<\/p>\n The Markit\/Chartered Institute of Procurement & Supply services Purchasing Managers’ Index plunged to 41.2 from 50.4 in December. A score below 50 indicates contraction. The flash score was 40.6. <\/p>\n<\/p>\n Market Analysis<\/p>\n<\/div>\n