By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — European stock markets closed higher on Thursday, driven by well-received results from Nordic banks and Unilever NV, along with news that the U.K. economy grew 1% in the third quarter.
The Stoxx Europe 600 index XX:SXXP +0.26% added 0.3% to 270.23. Along with other major European indexes, the Stoxx 600 snapped a three-day losing streak on Wednesday, gaining 0.4% to close at 269.52.
U.S. stocks rose, helped by Procter & Gamble Co. PG +3.14% and Aetna Inc. AET +0.98% , as those firms’ earnings exceeded analysts expectations. Data also helped support markets, with U.S. durable-goods orders jumping 9.9% in September. See: U.S. stocks rise with data on global economy.
The banking, drug and diversified-food sectors drove gains for Europe. Nordic banks DNB ASA NO:DNB +2.91% and SEB AB SE:SEBA +1.58% , both reported higher profit, with shares up 2.9% and 1.6%, respectively. Read: Nordic banks' earnings rise; credit quality firm.
Shares in heavyweight Unilever UN +2.73% NL:UNA +2.62% jumped 2.6% after the firm reported higher sales, boosted by price rises. The consumer-goods giant warned of continued global uncertainty. Read: Unilever warns of uncertainty as sales rise.
John Ventre, fund manager at Skandia Investment Group, said markets are unwinding some from a few days of bearish sentiment.
“There’s enough reason to understand why markets have paused a little bit after their big run-up, but the general risk-on dynamics seem to be intact to me,” Ventre said.
“Putting it in the context of what’s happening in the government bond markets in particular and emerging-market currencies, there really doesn’t seem to be a mass exit of all types of risk assets just because European equities [were] down for a few days,” he said.
Also higher in Europe: BASF SE DE:BAS +0.96% rose 0.8% after the German chemicals company confirmed its outlook for the year, even as it posted a fall in third-quarter after-tax profit. Read: BASF backs outlook, reports lower profit.
That stock did some heavy lifting for the German DAX 30 index DX:DAX +0.10% , which ended up 0.1% to 7,200.23. The index was able to shake off a 2.7% drop by Daimler DE:DAI -3.02% . The auto maker warned the previous day that 2013 profit before interest and tax would fall from a year earlier. Read: Daimler sees full-year decline in EBIT; shares off.
Bayer AG DE:BAYN +0.85% shares rose 0.7%. The drug maker said it would collaborate with Qiagen on cancer therapies. Bayer, Qiagen to collaborate on cancer therapies.
In London, shares of AstraZeneca PLC , AZN +1.20% UK:AZN +0.42% rose 0.4% after the company posted a profit fall in the third quarter due to losing patent protection on a key drug, but stuck to its full-year earnings forecast.
In London, the FTSE 100 index UK:UKX +0.0047% ended flat at 5,805.05, helped by gains in the bank sector. Standard Chartered PLC UK:STAN +1.24% closed up 1.2%. Barclays PLC UK:BARC +1.28% BCS +1.65% added 1.3%.
Adding support, the U.K. economy saw stronger-than-expected growth in the third quarter, a gain of 1%, which was the biggest quarterly rise since 2007. Read: Dollar off, sterling jumps as U.K. sees growth .
In Paris, the CAC 40 index FR:PX1 -0.44% reversed earlier gains to fall 0.4% to 3,411.53.
Among other companies reporting, France Telecom SA FR:FTE -5.16% posted a drop in third-quarter profit, said 2013 could be tougher than this year and proposed to cut its dividend. Shares fell 5.2%.
Shares in drug maker Sanofi SA FR:SAN +1.42% SNY +1.74% added 1.4% and heavyweight insurer AXA SA FR:CS +1.04% climbed 1% after the company reported a 3.7% sales rise for the first nine months of the year.
Barbara Kollmeyer is an editor for MarketWatch in Madrid.
