Europe close: Stocks in broad-based rally

LONDON (ShareCast) - Bourses had a ball Wednesday as company earnings impressed and on strength among US peers.

Banks Societe Generale (Paris: FR0000130809 - news) , Credit Agricole (Paris: FR0000045072 - news) and Deutsche Bank (Xetra: 514000 - news) were on buyer's shopping lists.

France's SocGen saw net profit jump 132% to €426m in the third quarter, thanks to a good performance at its corporate and investment banking arm.

The motor industry was also very much in focus.

General Motors (NYSE: GM - news) made a surprise move to abandon the sale of its European arm, which includes Germany's Opel and Vauxhall in the UK.

The US automaker originally agreed to sell the business to Canadian firm Magna International and its Russian partner Sberbank after month of negotiations with a number of bidders and the German and British governments.

General Motors said the decision, announced late yesterday when the group reported a 4% rise in US car sales, was due to improving economy and the strategic importance of Opel's compact car technology. German unions are furious and plan to strike.

Elsewhere in the sector, stronger than expected second quarter results from Japan's Nissan helped European rivals. The carmaker, in which Renault (Paris: FR0000131906 - news) has a 44% stake, also revised its full-year forecast to a profit from a loss previously.

Peugeot (Paris: FR0000121501 - news) , Daimler (Xetra: 710000 - news) and Volkswagen (Xetra: 766400 - news) were among the best performers.

Across the markets, the Frankfurt added 90 points to finish at 5,444, Paris jumped 86 points, or 2.4%, to 3,670, while Zurich ended 53 higher at 6,267.

Elsewhere, sportswear giant Adidas (Xetra: 500340 - news) strengthened after third-quarter net income attributable to shareholders fell a less-than-expected 30% to €213m.

France's Total reported a 54% drop in third-quarter net profits to €1.9bn, but said its oil production was 'back on track'.

In economic news, the euro zone's services sector grew at a faster pace than expected in October, to 52.6 in October from 50.9 in September, compared with the preliminary readings of 52.3.