European Shares Extend Gains On Hopes Of UK Fiscal Plan Reversal

European stocks rose on Friday to extend gains from the previous session amid hopes that U.S. inflation may have peaked around 8 percent and would trend lower in the coming months.

Investors also cheered reports of potential fiscal plan U-turn. Media reports suggest that the British government will announce a U-turn on elements of its 43-billion-pound package of unfunded tax cuts that sparked turmoil in financial markets over the past few weeks.

The pan European Stoxx 600 climbed 0.9 percent to 392.72, while the German DAX, France’s CAC 40 index and the U.K.’s FTSE 100 were up between 0.7 percent and 1 percent.

Dutch navigation and digital mapping firm TomTom plunged 9.5 percent after posting a narrower loss in Q3.

Swiss banking software group Temenos plummeted 23 percent after slashing its 2022 guidance.

UPM-Kymmene surged 4.3 percent. The Finnish forestry firm posted higher Q3 results and forecast improved adjusted EBIT for 2022.

Royal Mail shares slumped 12 percent. The postal service expects operating loss of about £350m in year to end of March, which could rise to £450m.

Diageo rose about 1 percent after it unveiled plans to increase its stake in East African Breweries.

Ashmore declined 2.2 percent after the investment manager said its assets under management slipped by $8 billion in its first quarter.

Danone added nearly 2 percent. The French food-products corporation said that it has started a process to transfer the effective control of its Essential Dairy and Plant-based or EDP business in Russia.

German wind turbine manufacturer Nordex jumped more than 5 percent after an update that it received orders for 227 wind turbines with a total rated output of 1441MW in the third quarter of 2022.

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