European stocks rallied to test 5 year high this morning, following a strong Asian session and healthy PMI figures from Europe. Asia kick started the move, notably Japan, where improved guidance from Toyota helped the Nikkei post near 1% gains for the session. Good news on the mainland followed, with an increase in European PMI figures helping to soften the blow of yesterdays’ cut to 2014 growth forecasts. The number came in at 51.6 to beat 50.9 forecasts, with both French and German components comfortably bettering expectations. The growth story in the UK continued with industrial production bouncing back 0.9% from a contraction in August, factory production also beat forecasts. Persimmon has seen an increase in both profits and sales in Q3 despite a lag in the new government help to buy scheme that has delayed the expected bump in sales. The firm has pointed to slow reactions from mortgage lenders for the “muted” impact on housing sales, with the real impact expected when competition for loans to government backed buyers sees a cut in interest rates. HSBC has risked the loss of a 10% discount on any potential Euribor fine by walking from talks with the EU. The bank reportedly feels that they are being forced to accept admission for breaches they did not commit, and that the scale of the fines is not a true reflection of the misdemeanour. Easyjet flew to the top of the FTSE in early trade after reporting passenger numbers up 5.4% and a 0.7% increase in load factor. Not far behind was IAG on the read across, up over 2% on the implied boost for the sector. Dutch financial giant ING has received backing from the markets this morning after winning permission from regulators to IPO a combination of its Japanese insurance and European operations in 2014. The deal allows the firm to cut short restructuring plans by around 2 years and sees the stock up over 5%. After a mass of European firms blamed Euro strength for flagging profits, Toyota seems to be reaping the benefits of Abenomics and the weaker Yen. The firm raised its annual profit forecast today, and looks set to test records set before the 2008 banking crisis, with net profits for Q3 up a staggering 70%. CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.