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.
