European stocks opened positively on Thursday, continuing the upward trend established in the previous session. The pan-European Stoxx 600 index reported a 0.6% increase just ten minutes into trading, with most sectors performing well. Key sectors driving the gains included automotive and technology, which rose by 2.1% and 2.3%, respectively.
Market attention remains fixated on the recent U.S. government shutdown, triggered by a failure to reach a short-term funding agreement between Republicans, including President Donald Trump, and Democrats. This shutdown means the release of crucial September jobs data, originally scheduled for Friday, will be delayed, leaving uncertainty regarding the Federal Reserve’s upcoming decisions. Many analysts speculate that an interest rate cut is on the horizon during the Fed’s meeting on October 28-29, particularly following Wednesday’s ADP data indicating a decline in private payrolls last month. The broader implications of the government shutdown are also expected to impact economic outlooks.
In notable corporate news from Europe, British supermarket giant Tesco announced better-than-anticipated first-half earnings, prompting the company to raise its full-year guidance. Tesco now projects its adjusted operating profit will be in the range of £2.9 billion to £3.1 billion ($3.9 billion to $4.2 billion), an increase from its previous forecast of £2.7 billion to £3 billion. As a result, Tesco’s shares climbed 1.4% during early trading.
Meanwhile, Deutsche Bank adjusted its price target for Danish jewelry maker Pandora, reducing it by 4.3%. Analyst Alison Lygo pointed to the significant rise in silver costs as a factor influencing their revised forecasts. However, she mentioned that a robust marketing strategy could enable Pandora to incorporate stainless steel into its products to mitigate this challenge. Following the update, shares of Pandora were up 1.1% shortly after the market opened.
In the U.S., stock futures showed little change on Wednesday evening after the S&P 500 index reached a new high, indicating that investors were largely unconcerned about the ongoing government shutdown. Meanwhile, in the Asia-Pacific region, South Korea’s Kospi index soared over 3% on Thursday to achieve an all-time high, largely attributed to significant gains in major companies such as Samsung Electronics and SK Hynix.
