European stocks see bounce, but on track for big weekly declines

European stocks see bounce, but on track for big weekly declines

Global equities attempt to take back some lost ground

European equities moved higher Friday, looking to end the week with a bounce but still on track for big weekly decline.

How are the indexes performing?

The pan-European Stoxx 600 index SXXP, +0.56% gave back some initial gains but remained 0.6% higher at 361.91. London’s FTSE 100 stock index UKX, +0.50% rose 0.8% to 7,0063.79, while the CAC 40 stock index PX1, +0.64% in Paris rose 0.7% to 7,064.05 and the German DAX DAX, +0.54% advanced 0.7% to 11,618.40. All of the major indexes were on track for big weekly losses, with the Stoxx eyeing a 3.8% decline.

Italy’s FTSE MIB I945, +0.59% rose 0.7% but was set for a 4.2% weekly fall amid the global equities rout and worries about a likely budget clash between the country’s government and the European Union.

What’s driving the market?

The rebound comes amid a pause in the heavy bout of U.S.-led selling that many investors tied to a rise in government bond yields that triggered a selloff in stocks around the world. Europe’s bounce follows a rebound by Asian stocks, which also suffered a heavy weekly drubbing. U.S. stock-index futures were pointing to sharp gains for Wall Street.

What are analysts saying?

“Today’s rebound appears to offering a brief respite for investors at what has been an absolute shocker of a week, and while today’s respite is welcome it remains to be seen whether we’ve seen the bottom in the short term,” said Michael Hewson, chief market analyst at CMC Markets, in a note. The beginning of U.S. earnings season “could well offer clues with particular attention likely to be on company’s forward projections for profit and revenue guidance.”

What stocks are moving?

Some of the week’s hardest-hit sectors were leading gains Friday. Luxury-goods stocks, which have suffered amid worries over China’s growth outlook and emerging markets, gained ground.

Shares of Gucci parent Kering KER, +3.30% rose 3.6% in Paris, while LVMH Moet Hennessy Louis MC, +0.92% rose 1%. In London, shares of Burberry Group PLC BRBY, +2.01% rose 1.7%.

Oil companies and miners were also gainers, with Total SA FP, +0.94% up 1.4%, BP BP., +0.99% rising 0.9%, and Rio Tinto PLC RIO, +2.45% and Glencore PLC GLEN, +2.39% each up 2.3%.

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