Europe’s Biggest Firms Soar on Earnings, Setting Tone for Season

Investors are generously rewarding positive earnings news from some of Europe’s biggest companies early in the reporting season, sparking equity gains and optimism for a year-end rally.

Shares of Nestle SA, LVMH Moët Hennessy Louis Vuitton SE and ASML Holding NV are up as much as 10% this week after their respective updates, outpacing an advance of 1% in the Stoxx Europe 600.