European markets rise day after ECB rate cut; Gucci-owner Kering climbs 5%

The European Central Bank and the U.S. Federal Reserve volition apt chopped involvement rates astatine a comparatively akin gait arsenic their respective complaint cutting cycles are underway, Konstantin Veit, portfolio manager astatine Pimco, told CNBC's "Street Signs Europe" connected Friday.

Veit said that determination are bully arguments for the ECB to chopped faster than the Fed does, but besides for the ECB to beryllium slower than its U.S. counterpart. However, helium thinks the gait of complaint trims volition beryllium "fairly synchronized" betwixt the 2 cardinal banks.

The ECB connected Thursday cut its cardinal involvement complaint by 25 ground points for the 3rd clip this year. Stateside, the Fed has lone reduced rates erstwhile this twelvemonth — but by 50 ground points. One ECB gathering and 2 Fed meetings are inactive owed to instrumentality spot earlier the extremity of the year.

— Sophie Kiderlin

Luxury stocks climbed successful Europe connected Friday arsenic investors considered the outlook for the Chinese system and markets successful the region.

Gucci-owner Kering was past up 5.07% astatine 9:48 a.m. ET, portion Burberry roseate 4.45% and LVMH added 3.1%. Other luxury brands including Hugo Boss and Christian Dior besides gained ground.

"The latest announcements by China to enactment the system arsenic good arsenic fiscal markets are giving a boost to luxury stocks today, connected the presumption that this precise mediocre net play whitethorn people a tentative bottommost for a assemblage wherever downturns are typically crisp but short-lived," Swetha Ramachandran, planetary equities money manager astatine Artemis Fund Managers, told CNBC connected Friday.

Luxury stocks person been reactive to quality retired of cardinal marketplace China, arsenic Beijing aims to boost its economy.

Data retired of China connected Friday showed that the country's third-quarter GDP grew by 4.6% year-on-year, which was somewhat higher than expected. Retail income information for September besides bushed estimates, expanding by an yearly 3.2%.

China's cardinal slope meantime signaled further monetary argumentation easing, with Governor Pan Gongsheng saying that the reserve request ratio for commercialized banks could beryllium chopped further by the extremity of the year.

Emmanuel Cau, caput European equity strategy astatine Barclays, told CNBC connected Friday that the luxury banal moves appeared to beryllium "a bounce connected amended China data."

— Sophie Kiderlin

Cybersecurity steadfast Wiz is seeking to deed $1 cardinal of yearly recurring revenues adjacent year, the company's billionaire co-founder Roy Reznik told CNBC, adding that the steadfast volition spell nationalist "when the stars align."

Earlier this year, the company rejected a $23-billion acquisition bid from Google, which would person marked the tech giant's largest-ever takeover. At the time, Wiz CEO Assaf Rappaport said the startup was "flattered" by the offer, but would stay an autarkic institution and purpose to database instead.

Read much here.

— Ryan Browne

Mainland China's CSI 300 jumped 3.62% to adjacent astatine 3,925.23. Hong Kong's Hang Seng index was up implicit 3.3% arsenic of its last hr of trade.

China's third-quarter GDP grew 4.6% compared to the aforesaid play past year, somewhat supra Reuters canvass estimates but down from 4.7% successful the erstwhile quarter.

Japan's Nikkei 225 added 0.18% to 38,981.75 portion Topix was up somewhat astatine 2,688.97.

Kospi slipped 0.59% to 2,593.85, portion Kosdaq was down 1.55% to 753.22. Australia's S&P/ASX 200 edged 0.87% little to 8,283.2.

— Anniek Bao

Expectations coming into Europe's third-quarter net play are "pretty low," according to 1 money manager, portion the latest macroeconomic information suggests a much comparatively affirmative outlook for the U.S.

"The information we're seeing from the macro level successful the U.S. is much encouraging than Europe," Clare Pleydell-Bouverie, money manager astatine Liontrust Asset Management, told CNBC's "Squawk Box Europe" connected Friday.

"Going into a rate-cutting rhythm with a resilient system is simply a beardown set-up for stocks. That said, the slowdown that we're seeing successful the Europe data, the PMIs, [European Central Bank President Christine] Lagarde pointed to this yesterday successful her speech, a batch of this is being priced into the market," Pleydell-Bouverie said.

"We've conscionable started net play implicit present successful Europe [and] expectations are beauteous low. We're looking astatine net maturation expectations of conscionable 3% for Europe. If you portion retired financials, it's antagonistic 2%," she continued.

"So, wherever we're focused is looking for immoderate of these truly high-quality companies that you conscionable don't get precise galore options to bargain into, who are trading astatine 20% discounts to their banal averages," Pleydell-Bouverie added.

— Sam Meredith

European markets opened mixed connected Friday, with the pan-European Stoxx 600 past dipping by 0.06% astatine 8:06 a.m. London time.

Major determination bourses and sectors were mixed, with autos stocks past adding 1.17% and mining stocks rising by 1.69%. Telecomms, healthcare and utilities were among the sectors that pulled back.

Stoxx 600

Retail income successful the U.K. roseate 0.3% successful September, data published Friday by the country's Office for National Statistics showed — reaching their highest level since July 2022.

Economists polled by Reuters had been expecting a 0.3% decline. Retail income had accrued by 1% successful August.

Computer and telecoms retailers recorded beardown growth, boosting non-food income volumes, portion nutrient income decreased successful September, the ONS said.

"The bedewed upwind didn't deter the British nationalist spending their wealth successful September, arsenic shown by stronger than expected retail sales," Neil Birrell, main concern serviceman astatine Premier Miton Investors, said successful a note.

"This runs contrary to what user assurance information is telling america and indicates that wage maturation is an important factor. The user assemblage is precise important wrong the system and adjacent though this is conscionable 1 month's data, it suggests the system is much robust than was thought."

— Sophie Kiderlin

Volvo Group connected Friday posted its third-quarter earnings, reporting a diminution successful income and adjusted operating income compared to a twelvemonth earlier.

Net income fell by 12% to 117 cardinal Swedish krona ($11.1 billion), the institution said, down from 132.3 cardinal Swedish krona successful the aforesaid 4th a twelvemonth ago.

Adjusted operating income came successful astatine 14.1 cardinal Swedish krona successful the 3rd 4th of 2024, compared to 19.3 cardinal a twelvemonth earlier.

Demand normalized successful the 3rd 4th crossed astir of Volvo Group's markets, Martin Lundstedt, president and CEO of the company, said successful a statement Friday.

"We are seeing that freight and operation enactment has travel down successful galore regions crossed the satellite compared with the precise precocious levels of past year," helium added.

Volvo Group manufactures buses, trucks and operation equipment.

— Sophie Kiderlin

European markets were headed for a mixed unfastened connected Friday.

The U.K.'s FTSE 100 index is expected to unfastened 20 points little astatine 8,369, Germany's DAX is seen down 37 points astatine 19,548 and France's CAC is expected to gaffe 17 points astatine 7,567.

Italy's FTSE MIB, meanwhile, looks acceptable tor reverse the trend, opening 77 points higher astatine 34,934, according to information from IG.

Earnings connected Friday travel from Volvo Group. On the information front, investors volition beryllium looking retired for retail income figures from the U.K.

— Sophie Kiderlin

Three London stocks are connected the march and are expected to emergence by much than 50% implicit the adjacent 12 months.

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— Ganesh Rao