Europe close: Stoxx 600 hits new high as corporate earnings impress

(Sharecast News) - European stocks rose to a new all-time high on Thursday, with a flurry of heavyweight corporate earnings impressing investors, as oil prices jumped.

The Stoxx 600 index closed the session up 0.4% at 574.81, with all major indices across the continent in the green, with the exception of Zurich's Swiss Market Index, which finished 0.5% lower. This was a new record closing high for the Stoxx 600, topping an earlier peak of 573.79 reached on 8 October.

The US overnight imposed fresh sanctions on the two companies as it looked to ramp up pressure on Moscow to end its war in Ukraine, causing oil prices to surge.

President Donald Trump said that while he continued to have "good conversations" with his Russia counterpart Vladimir Putin, "they don't go anywhere". Brent crude was 5.1% higher at $65.81 a barrel by the close.

"Trump's flip-flopping in his approach to Russia has caught oil bears on the hop today," said Chris Beauchamp, chief market analyst at IG.

"Already this week we have seen a drop in US inventories causing a sharp move higher, and now fresh sanctions have caused another leap that has meant that crude is revelling in its best three day move since June. Selling such rallies has been the way to go for months but for now the pain trade is higher."

Corporate earnings impress

Shares in Volvo Car rocketed after the Swedish auto group returned to sales growth in September and posted higher profits for the third quarter, helped by recent restructuring and cost-cutting efforts.

Rentokil was the standout gainer in London after saying it was on track to meet full-year market expectations following an encouraging third-quarter performance with improved trading in North America.

LSEG was also sharply higher on the back of raising its margin guidance and announcing a new share buyback. The platform operator also revealed it will sell a 20% stake in its clearing unit, Post Trade Solutions, to a group of banks in a deal that values the business at �850m.

Shares in Finnish telecom Nokia sparked after the telecoms giant posted above-forecast third-quarter numbers, with net sales up 12%, driven by a strong performance in network infrastructure and cloud and network services.

In Paris, Kering was in demand after the luxury fashion group reported better-than-expected results on the back of a strong performance at Gucci, its largest brand.

Lloyds Banking Group edged up even as it reported a 36% fall in third-quarter profit after taking an extra �800m hit from the motor finance scandal. "The car finance scandal may have sent profit into reverse but there was enough underlying good news from Lloyds to keep the share price ticking over," said Russ Mould, investment director at AJ Bell.

Oil majors Total, Repsol, BP and Shell were tracking oil prices higher after the US imposed fresh sanctions on Russian oil firms Rosneft and Lukoil as it looks to ramp up pressure on Moscow to end its war in Ukraine.

Renault Group reported a solid third quarter, with sales up by nearly a tenth over last year with all three of its automotive brands reporting growth, but shares finished moderately lower.