Source: Sharecast
Manufacturing purchasing managers' indices (PMIs) across France, Germany, the Eurozone and the UK all came in below expectations, but that didn't stop the Stoxx 600 rising 0.4% to 555.52, with well-received corporate updates and earnings providing a boost.
Markets in the US opened in a relatively subdued fashion but held close to their record highs, with the mood continuing to be supported by the Nvidia-OpenAI deal.
"Every time you think the AI rally has topped out, it finds another gear," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. "Yesterday was one of those days... Nvidia surged nearly 4% to a fresh ATH after reports that it will deepen its partnership with OpenAI to build massive new data centres and AI infrastructure."
Over in Europe, Sweden’s Riksbank cut its policy rate on Tuesday by 25 basis points to 1.75% as it signalled the easing cycle could be coming to an end. Announcing its third interest rate cut this year, the central bank said it decided to make the cut to "provide further support to the recovery and to stabilise inflation at the target in the medium term".
On the economic front, the seasonally-adjusted HCOB eurozone composite PMI output index rose to 51.2 compared with 51 in the previous month - the ninth consecutive month above a reading of 50 which separates contraction from expansion.
Growth in business activity was due to the service sector posting the fastest rate of increase in 2025 so far, HCOB said. Manufacturing production also rose, but the rate of expansion eased from the near three-and-a-half year high registered in August and was only slight.
In other news, the OECD said it now expects global GDP growth to slow from 3.3% in 2024 to 3.2% in 2025 and 2.9% in 2026. It acknowledged that economic growth had proven more resilient than initially expected in the first half, but noted that tariffs were having an impact on consumer behaviour, labour markets and prices.
Kingfisher and Kingspan lead the advance
London-listed Kingfisher surged 14% as the DIY retailer lifted its full-year profit guidance despite weaker consumer sentiment, following strong interim trading. Underlying like-for-like sales were up 1.9%, with market share gains in the UK, France and Spain.
Kingspan Group jumped 8% after announcing plans for an IPO of 25% of its data-centre unit ADVNSYS, which could leave the Irish building materials clearing its debt.
Shares in Orsted gained 4% after a US judge ruled that the Danish renewable energy outfit could resume construction of a wind farm off the coast of Rhode Island, overturning a Trump administration stop-work oder.
Heineken rose 1% after the Dutch brewer said it was buying the beverage and retail businesses of Costa Rica's Florida Ice and Farm Company for $3.2bn.
Finally, Frankfurt-listed travel firm Tui was in demand, up 3% after reporting that it was on track to deliver recently upgraded full-year profit guidance as it hailed a positive start to the winter season.
Heading the other way was Smiths Group despite the UK engineering firm beating guidance with its annual results. Shares fell 3% as it flagged a slowdown in organic growth to just 4.5-7% this year, from 8.9% over the previous period.
