Europe’s main stock gauge moved higher on Friday, setting up for its first positive weekly close in three, as relief over the global trade picture helped drive appetite for riskier assets such as equities.
What are markets doing?
The Stoxx Europe 600
rose 0.2% to 377.04, after Thursday’s loss of 0.2%.
Germany’s DAX 30
was up 0.3% to 12,087.49, while France’s CAC 40
added 0.3% to 5,343.03. The U.K.’s FTSE 100
was flat at 7,284.76.
traded at $1.1717 from $1.1691 late Thursday, while the pound
was changing hands at $1.3126 from $1.3109.
What is driving the market?
marked its fourth-straight gain, driven by tech stocks.
Growing upbeat sentiment surrounding global trade were also helping to underpin gains. A fresh round of trade talks could take place later this month after the White House reportedly extended an invitation to Chinese officials. As well the Turkish central bank’s move to bolster its currency on Thursday also helped foster some appetite for risk.
Economic data from the U.S. will swing into focus in the afternoon, with retail sales for August in the spotlight, along with a consumer sentiment survey.
In the U.K., Brexit was in the headlines again after Bank of England Gov. Mark Carney reportedly told Prime Minister Theresa May and her cabinet on Thursday that a no-deal exit from the European Union would cripple the country’s economy.
What are strategists saying?
“Encouraging news that Trump’s administration seeks to start negotiating with China again to resolve their trade differences is helping investors’ sentiment,” said Konstantinos Anthis, head of research at ADS Securities, in a note to clients.
Shares of Investec PLC
surged 8%, the best performer in the Stoxx Europe 600 after the investment bank said it would spin off and separately list its asset-management unit.
Ryanair Holdings PLC
rose 1.8%. The airline said it was close to reaching a collective labor agreement with its Italian-based cabin crew.
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