FX.co ★ European Stocks Extend Gains

European stocks continued to rise into the afternoon session on the first trading day of November. The STOXX 50 index gained 0.7%, while the STOXX 600 increased by 0.5%, largely driven by the auto sector's performance. Investor sentiment improved following China's announcement that it might allow exemptions for Nexperia's chip exports, easing fears about semiconductor shortages. In the automotive sector, Mercedes-Benz saw a notable rise of 3.5%, with Volkswagen, Renault, and Stellantis also recording significant increases of 2.8%, 2.9%, and 2.1% respectively. Shares in Rheinmetall climbed nearly 3% ahead of its earnings report later this week. Meanwhile, BP saw a 0.5% uptick after agreeing to sell stakes in its US shale operations to Sixth Street for $1.5 billion. Ryanair recovered with a gain of 2.8% following results that slightly surpassed profit expectations. On the downside, Davide Campari Milano dropped over 3% after Italian tax authorities reportedly seized $1.5 billion in shares from the company’s main holding due to an alleged tax evasion investigation. Additionally, BNP Paribas fell 1.6% as it looks to raise Additional Tier 1 capital for the first time since its unsuccessful attempt to acquire Banco Sabadell.