European Stocks Hit Five-Year High on Earnings News

European Stocks Hit Five-Year High on Earnings News (Bloomberg)

European companies ranging from oil production to auto manufacturing have been surprising analysts with Q3 earnings that have beaten estimates — in some cases, soundly. And, those companies share prices have received a nice boost as a result.  Investors in Eni SpA (ENI), a leading gauge of oil company performance, saw their shares rise 3.2 percent, while Volkswagen AG investors were rewarded with a 4 percent climb. Overall, the Stoxx Europe 600 Index has advanced 3.8 percent in October alone. According to Francois Savary, chief investment officer at Reyl & Cie. in Geneva, “People are buying equities because of future expectations.” Not quite the sort of incisive analysis that one should bet the farm on, but it does bolster the opinion that European companies are mounting a comeback.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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