. European Stocks Higher; Evergrande News, L'Oreal Results Help

European Stocks Higher; Evergrande News, L’Oreal Results Help

22 Oct 2021

European stock markets traded higher Friday, helped by an easing of worries surrounding embattled property group China Evergrande as well as positive corporate earnings, notably French cosmetics giant L’Oreal.

At 3:50 AM ET (0750 GMT), the DAX in Germany traded 0.4% higher, the CAC 40  in France rose 0.8% and the U.K.’s FTSE 100 climbed 0.3%.

China Evergrande remitted $83.5 million in coupon payments to a trustee account at Citibank on Thursday, according to a report from Reuters, meaning the deeply indebted company will be able to pay interest to all bondholders before the expiry of a 30-day grace period on Oct. 23.

Although it wasn’t clear how the money was raised and there is still no sign of a comprehensive restructuring of its $300 billion in liabilities, this news has reduced the immediate chance of contagion, raising the global risk appetite.

Back in Europe, Remy Cointreau  stock rose 1.3% and L’Oreal  stock soared 6% after the two French luxury goods retailers posted strong quarterly revenue growth, benefiting from continued strong demand from primarily Chinese consumers.

Essity AB B  stock climbed over 5% after the Swedish tissue maker reported a higher-than-expected rise in quarterly profit, thanks to the growing awareness of the importance of hygiene.

The FTSE MIB climbed up by 0.42% to 26,637.20. In the cash markets, the DAX  Germany was trading up 0.72%  to 15,584.65. CAC 40  in France  rose by 1.04% to 6,755.37 while the FTSE 100  in the U.K. were  up by 0.48% to 7,225.35. ,at the time of writing.