LONDON (The Deal) -- European stock indices moved higher on Wednesday, reversing initial losses triggered by some disappointing earnings bulletins.
By late morning, the FTSE 100 in London was up 0.44% at 10,192.79. The DAX in Frankfurt was up 0.40% at 10,188.12 and the CAC 40 gained 0.42% to 4,693.56 in Paris.
U.K. data showed a bigger-than-expected decline in public sector net borrowing in September, providing a boost to Chancellor of the Exchequer George Osborne's controversial war on spending.
With little significant data out in Europe, a key event for U.K. investors will be a speech after markets close by Bank of England Gov. Mark Carney in Oxford.
In London, Home Retail Group (HMRLF) , which owns the Argos catalog-based variety-store chain and the Homebase home-improvement business, was down more than 13% after warning that full-year pretax profit would be slightly below market expectations of £115 million to £140 million ($177.7 million to $216.3 million). It blamed a poor first-performance at Argos and continued uncertainty about how that chain will fare for the rest of the year.
Pearson (PSO) was down more than 16% after it warned that full-year profit would be at the bottom end of an anticipated range. In a nine-month update it said "cyclical and policy related factors" hit markets including the U.S., where community college enrollments fell, and in South Africa, where certain provinces cut back on school text book purchases.
But chipmaker ARM Holdings (ARMH) , whose products are used in Apple iPhones, rose more than 7% on third-quarter figures.
Agricultural chemicals and seeds company Syngenta (SYT) was up close to 5% in Zurich as it announced the departure of CEO Mike Mack. Mack's exit comes after Syngenta spurned a $45 billion takeover proposal from Monsanto Co. (MON), which abandoned its one-sided courtship in late August.
Credit Suisse (CS) down more than 4% after it missed third-quarter profit estimates, in part because of weakness in its investment banking unit, and said it would raise Sfr6.05 billion ($6.3 billion) through share sales.
In Stockholm, Svenska Handesbanken, which also posted disappointing third-quarter earnings, was down more than 5%.
In Tokyo, stocks rose on anticipation of monetary easing by the Bank of Japan, which meets on Oct. 30, following weak data on September imports and exports. The Nikkei closed up 1.91% at 18,554.28 and the Topix gained 1.84% to close at 1,526.81.
Toyota (TM) closed up 2% in Tokyo. The company announced a recall of 6.5 million vehicles to fix window switches that posed a fire hazard.
In China, the Shanghai Composite was down 3.06% at 3,320.68. Hong Kong markets were closed for a public holiday.