European stock markets closed higher Friday despite a downbeat week, as investors assessed the state of play across first-quarter earnings and economic data.
The pan-European Stoxx 600 closed 0.4% higher, with banks higher by 0.8% and oil and gas stocks gaining 1.5%. Auto stocks dropped 0.7%.
France’s Societe Generale
beat first-quarter earnings estimates, as its shares climbed as much as 2%. The earnings of Germany’s Allianz missed expectations, but the company posted a 329% profit boost after last year’s results were affected by fines and a settlement over one of its U.S. funds. Shares of the financial services provider closed 0.5% higher.
Shares of Swiss luxury goods group Richemont
rose as much as 7.5% to an all-time high, after it beat estimates on both sales and earnings. Shares were 3.5% higher at the end of the session.
U.K. gross domestic figures showed 0.1% growth in the first quarter of the year, in line with forecasts, but an unexpected 0.3% fall in March as the services sector contracted.
The Bank of England on Thursday announced a widely expected 25 basis point rate hike to 4.5% as it seeks to tackle inflation that remains above 10%. The central bank also said it no longer expects the U.K. to fall into recession this year, after previously predicting the nation’s longest-ever recession.
Markets were still processing U.S. inflation data which on Wednesday came in at 4.9% year-on-year, less than anticipated; while on Thursday, figures showed wholesale producer prices also rose below expectations. But the stickiness of inflation has left uncertainty over whether the highly anticipated pause in rate hikes has arrived.
Asia-Pacific markets closed mixed on Friday, while U.S. stocks were flat by the European close.
Source: Consumer News Business Channel
