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Europe: Shares hit one-month high as banks, Sodexho shine

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European shares rallied to one-month highs on Thursday, extending gains following the US midterm elections, as strong results from SocGen and Commerzbank and France's Sodexho soothed concerns about slowing corporate earnings.

[LONDON] European shares rallied to one-month highs on Thursday, extending gains following the US midterm elections, as strong results from SocGen and Commerzbank and France's Sodexho soothed concerns about slowing corporate earnings.

The pan-European STOXX 600 was up 0.6 per cent at 0854 GMT, extending the previous session's gains and after hitting its highest since Oct 10.

The leading index of euro zone stocks rose 0.4 per cent with Germany's DAX up 0.4 per cent and France's CAC 40 0.4 per cent higher.

The banking and insurance indexes were among the top performing sectors, each up 1.1 per cent, with travel and leisure flying high after Sodexo's better-than-expected revenue.

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Shares in the world's second-biggest catering company jumped 6 per cent to their highest since March and on track for their best day since July.

Italy's third-largest lender Banco BPM jumped 7.6 per cent after its third-quarter net profit beat forecasts thanks to lower costs and an asset sale that helped offset flat fees and falling interest income.

Commerzbank and SocGen were up 4.6 per cent and 4 per cent respectively after solid earnings updates.

It wasn't all good news though. Shares of broadcaster ProSiebenSat.1 plunged 17 percent to the bottom of the STOXX 600, hitting lowest level in more than six years after cutting its dividend and warning on its full-year outlook.

REUTERS