📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

European stocks edge higher; U.K. GDP, Richemont earnings in focus

Published 12/05/2023, 06:30 pm
© Reuters.
EUR/USD
-
UK100
-
FCHI
-
DE40
-
CFR
-
ALVG
-
SOGN
-
GC
-
LCO
-
CL
-
NAS
-

Investing.com - European stock markets traded higher Friday as investors digested mixed U.K. growth data as well as more quarterly corporate earnings.

At 04:15 ET (08:15 GMT), the DAX index in Germany traded 0.4% higher, the FTSE 100 in the U.K. climbed 0.3% and the CAC 40 in France rose 0.8%.

Data released Friday showed that the U.K. economy grew by 0.1% in the first three months of 2023, despite an unexpectedly sharp 0.3% drop in output in March.

"The fall in March was driven by widespread decreases across the services sector," ONS statistician Darren Morgan said earlier Friday.

The Bank of England lifted interest rates by 25 basis points on Thursday to the highest level since 2008 as it combats inflation at highly elevated levels, but also mentioned the resilience of the economy as it upgraded its growth projections.

Data from France and Spain confirmed that inflation remained elevated in these two major Eurozone countries.

The European Central Bank also hiked interest rates last week and signaled more increases lie ahead, with ECB President Christine Lagarde stating Thursday that the central bank’s efforts to curb inflation aren’t over.

The earnings season continued Friday.

Richemont (SIX:CFR) stock rose over 5%, climbing to an all-time high, after the Swiss luxury group expressed confidence in benefiting strongly from a recovery in Chinese demand.

Societe Generale (EPA:SOGN) stock rose 0.9% after the French lender beat quarterly earnings estimates as its bond trading offset a slump in retail banking.

Allianz (ETR:ALVG) stock fell 0.4% despite the German financial services company posting a healthy jump in first-quarter net profit, rebounding after taking charges a year ago for a U.S. funds scandal, weighed by weakness in its asset management division.

Norwegian Air Shuttle (OL:NAS) stock fell 4.7% after the budget carrier reported a first-quarter loss, with this outweighing strong summer booking numbers.

Oil prices fell Friday, and are on course for four consecutive weeks of declines on worries that the U.S. economy is heading towards recession coupled with lingering fears over a slow recovery in China's fuel demand. 

However, speculation that the U.S. could repurchase oil for its heavily-depleted Strategic Petroleum Reserve if prices consistently trade around $70 a barrel is providing a degree of support.

By 04:15 ET, U.S. crude futures traded 0.8% lower at $70.33 a barrel, while the Brent contract dropped 0.8% to $74.36. Both benchmarks are currently set to drop around 1% this week.

Additionally, gold futures were down 0.3% to $2,013.90/oz, while EUR/USD traded 0.1% lower at 1.0910.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.