UKX FTSE 100 Index

By Carla Mozee, MarketWatch

Richemont warns of lackluster outlook on luxury market

European stocks leapt Friday, heading for weekly advance, as investors' appetite for risk revived after a selloff spurred by concerns about the next U.S. interest-rate hike.

The Stoxx Europe 600 rose 1.2% to 337.79, led by energy shares and financial and basic materials stocks. Unicredit SpA (UCG.MI) climbed 5.1% after reports the Italian lender is considering selling some assets.

The pan-European index on Thursday fell 1.1% (http://www.marketwatch.com/story/european-stocks-slump-after-hawkish-fed-opens-up-for-june-rate-hike-2016-05-19) after minutes from the Federal Reserve's April meeting indicated policy makers are aiming to raise rates at their June meeting.

Energy shares on Friday gained as oil prices continued to rebound from a one-week low. Energy producer Tullow Oil PLC (TLW.LN) moved up 4.6%, and SBM Offshore NV (SBMO.AE) picked up 1.5%.

Oil "shooting back higher has ... helped to settle the jitters on the equity markets. Maybe the market needs more convincing that a June rate hike will be seen? With the potential for a significant market shock with the U.K.'s EU referendum just after the FOMC in June, I know that I do," said Richard Perry, market analyst at Hantec Markets, in a note.

The U.K. will hold an in/out Brexit referendum on June 23, asking voters whether the country should cut its membership ties with the European Union.

The Stoxx 600 was on track for a 0.9% rise for the week, which would be the benchmark's second consecutive weekly win.

Indexes: The U.K's FTSE 100 gained 1.5% to 6,144.33 (http://www.marketwatch.com/story/ftse-100-bounces-higher-as-fed-effect-fades-2016-05-20) as commodity shares bulked up, led by a 5.6% jump in shares of platinum and diamond producer Anglo American PLC (AAL.LN) .

Germany's DAX 30 gained 1.1% to 9,905.45, and France's CAC 40 rose 1.5% to 4,345.50.

Italy's FTSE MIB was up 1.7% to 17,852.20, while Spain's IBEX 35 added 1.3% to 8,783.70.

The euro added 0.2% at $1.1222.

Movers: Cie. Financière Richemont SA (CFR.EB) shares fell 2.3% after the Cartier parent reported a rise in full-year profit, but said conditions look gloomy for the luxury market in the coming months (http://www.marketwatch.com/story/richemonts-full-year-profit-rises-but-cartier-parent-warns-of-tough-months-ahead-2016-05-20).

"In the near term, we are doubtful that any meaningful improvement in the trading environment is to be expected," Richemont said.

Shares of watch maker Swatch Group Ltd. (UHR.EB) fell 1% but shares of other luxury makers held to higher ground, with Christian Dior SE (CDI.FR) rising 0.8%.

Fiat Chrysler Automobiles NV (FCA.MI) shares fell 1.4%. The car maker rejected an invitation to meet with German transport ministry officials (http://www.marketwatch.com/story/germany-fiat-chrysler-says-no-to-emissions-talks-2016-05-20) to discuss diesel emissions, the ministry said Thursday.

"This uncooperative behavior is completely incomprehensible," German transport minister Alexander Dorbrindt said in the statement.

(END) Dow Jones Newswires

May 20, 2016 05:19 ET (09:19 GMT)

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