European stocks open higher after upbeat H&M, STMicro results

European stocks rose on Thursday as Swedish retailer H&M and French-Italian chipmaker STMicroelectronics jumped after reporting forecast-beating results, while hopes of more US stimulus aided global sentiment.

The pan-European STOXX 600 index rose 0.7 per cent by 0707 GMT, with bourses in Paris and London up over one per cent, while German stocks rose 0.3 per cent.

H&M rose 5.6 per cent as it reported a third-quarter profit above analysts' expectations and said sales continued to recover in September. The retail index rose 1.3 per cent to lead sectoral gains.

STMicroelectronics jumped 3.5 per cent after it forecast 2020 sales above previous estimate.

After European markets ended the third quarter in a subdued manner on worries about a resurgence in European Covid-19 cases, Brexit deal and the United States election, the mood brightened on Thursday amid signs of progress in a US fiscal bill.

Final readings of September manufacturing activity for the eurozone and UK are due later in the day, with economists expecting recovery to remain intact after a coronavirus-induced hit.

German drugs company Bayer AG slumped 12 per cent to the bottom of STOXX 600 after announcing plans for more than 1.5 billion euros ($1.76 billion) of cost cuts as of 2024 and revealing impairment charges on its agricultural business.