European Markets Finished Mostly Higher As Euro Weakens Further
(RTTNews) - The majority of the European markets ended Friday's session with modest gains. Uncertainty over the future of Catalonia was overshadowed by the continued weakening of the Euro. The value of the currency has been falling since the European Central Bank pledged to continue with bond purchases beyond September 2018 yesterday, despite strong growth.
The weakening of the Euro provided a boost to shares of exporters. A number of better than expected corporate earnings reports also provided a boost to investor sentiment at the end of the trading week.
The pan-European Stoxx Europe 600 index advanced 0.60 percent. The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.41 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.73 percent.
The DAX of Germany climbed 0.64 percent and the CAC 40 of France rose 0.71 percent. The FTSE 100 of the U.K. gained 0.25 percent, but the SMI of Switzerland finished lower by 0.18 percent.
In Frankfurt, chemicals group Linde jumped 3 percent. The company confirmed its 2017 outlook after reporting a 3 percent rise third-quarter core profit.
Volkswagen gained 3.07 percent after reporting a better-than-expected 15 percent jump in third-quarter profit and lifting its profit guidance for the year.
In Paris, Safran rallied 1.54 percent after the aerospace group reported third-quarter revenue that beat expectations, driven by higher sales from the aerospace-propulsion business.
Total SA added 1.49 percent. The energy giant reported a 39 percent increase in third-quarter net income, taking full advantage of the favorable market environment.
In London, Royal Bank of Scotland Group advanced 1.71 percent. The bank reported three consecutive quarters of profits but still expects a loss for the full-year.
British Airways parent International Consolidated Airlines Group sank 6.94 percent after it reported a slowdown in passenger revenue growth.
Building materials and solutions company LafargeHolcim fell 0.87 percent in Zurich after saying that it is in talks with South African cement manufacturer PPC regarding a possible transaction in Africa.
UBS decreased 0.76 percent. The banking giant issued a cautious outlook after reporting a 14 percent rise in third-quarter net profit.
Electrolux surged 5.41 percent in Stockholm after reporting a better-than-expected 12 percent rise in third-quarter net profit.
A measure reflecting the current economic situation in euro area improved fractionally in October, results of a survey by the Bank of Italy and the Centre for Economic Policy Research showed Friday.
The Bank of Italy/CEPR Eurocoin indicator edged up to 0.72 in October from 0.71 in September. Moreover, the index rose for the fifth successive month.
Germany's import price inflation rose to a 4-month high in September, figures from Destatis showed Friday.
Import prices climbed 3 percent year-on-year in September, faster than the 2.1 percent increase in August. This was the fastest pace since May, when prices advanced 4.1 percent and also exceeded the expected growth of 2.6 percent.
At the same time, export prices increased at a faster pace of 1.7 percent, following August's 1.5 percent rise.
French consumer confidence weakened unexpectedly in October, survey data from the statistical office Insee showed Friday.
The consumer sentiment index fell to 100 in October from 101 in September. This was the fourth consecutive decline and a similar lower score was last posted in April. The score was forecast to remain unchanged at 100 in October.
Economic growth in the U.S. slowed modestly in the third quarter, according to a report released by the Commerce Department on Friday, although the pace of growth still exceeded economist estimates. The report said real gross domestic product jumped by 3.0 percent in third quarter after surging up by 3.1 percent in the second quarter. Economists had expected GDP to increase by 2.5 percent.
Consumer sentiment in the U.S. improved by slightly less than initially estimated in the month of October, the University of Michigan revealed in a report on Friday.
The report said the consumer sentiment index for October was downwardly revised to 100.7 from 101.1 but is still up from 95.1 in September. Economists had expected the index to be downwardly revised to 100.9.