Evergrande relief, earnings support European stocks

© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 21, 2021. REUTERS/Staff

(Reuters) – European stocks opened higher on Friday as a surprise interest payment by debt-ridden China Evergrande Group buoyed global sentiment while strong earnings from L’Oreal and gains in tech stocks lent further support.

The pan-European added 0.2% by 0707 GMT, while Asian shares rose on news that the Chinese property developer had wired funds for a dollar bond interest payment, days before a deadline that would have sunk the group into formal default.

European personal & household goods and tech were among the top gainers, up about 0.7% each.

French cosmetics major L’Oreal surged 5.4% after posting strong revenue growth on demand for its luxury lines and growth in China, while tissue maker Essity gained 5.2% after setting a new target to ramp up sales.

France’s Renault (PA:) slipped 1.2% after the carmaker said its production losses this year would be far larger than previously forecast owing to a global chip shortage.

Swedish mining firm Boliden dropped 5.4% as its third-quarter operating profit fell below market forecasts, pressured by higher costs and lower volumes.

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