By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks lost ground Friday, with
investors remaining cautious following a cease-fire in eastern
Ukraine.
Ukrainian President Petro Poroshenko in a statement said
representatives have signed an agreement to halt fighting between
Ukrainian forces and pro-Russia rebels, starting at 6 p.m. Kiev
time. Russian news agency Interfax reported pro-Russia rebels also
agreed to halt fire.
Although Friday's peace talks had been anticipated, U.S. and
European leaders at a North Atlantic Treaty Organization summit in
Wales still discussed imposing toughen sanctions on Russia over the
Ukraine crisis, and there were signs that some countries could
decide to send weapons to Kiev.
European share trading had ended for the week when U.S.
President Barack Obama said the U.S. and European Union were
finalizing more sanctions against Russia.
Markets: The U.S. dollar fell against the Russian ruble (USDRUB)
after news of the deal, but eventually recouped its losses, leaving
the greenback buying 37.053 rubles versus 36.958 rubles on
Thursday. Russian blue-chips finished higher, with MICEX index
gaining 1.2% to 1,474.71.
The Stoxx Europe 600 fell 0.4% to 347.57, but pared losses as
Germany's DAX 30 index turned higher for a 0.2% gain at
9,747.02.
The DAX 30 logged a 2.9% weekly advance, a fourth consecutive
weekly win. The Stoxx 600 notched a 1.6% weekly gain, also be its
fourth straight weekly rise.
"Ever tougher sanctions against Russia are not good for the
German economy, but this is being offset by a weaker euro, helping
exporters in particular," said Mark Tinker, head of AXA Framlington
for Asia, in a report. "The European equity markets have thus
rallied as the euro has weakened, with emphasis on cyclicals,
financials and exporters."
The euro fell roughly 1.3% this week against the greenback,
according to FactSet data. The euro slid to a near 14-month low,
trading below the $1.30 level, after the European Central Bank on
Thursday cut interest rates and announced a "private QE" program in
an effort to fight low inflation.
The euro (EURUSD) found a bit of relief Friday, buying $1.2964
compared with $1.2944 late Thursday, as a worse-than-expected
August U.S. jobs report pressured the dollar against major
rivals.
Advancers on the Stoxx 600 were led by 7.3% rise in Neopost
after the mailroom-equipment maker reiterated its full-year
view.
BP shares closed up 2.6%, paring Thursday's 5.9% tumble in the
wake of an unfavorable court ruling against the British oil major.
See more of Friday's European movers.
In France, the Paris CAC 40 fell 0.2% to 4,486.49, but closed
the week up 2.4%. The U.K. FTSE 100 lost 0.3% to end at 6,855.10,
in part as shares of Royal Bank of Scotland dropped 2.2%.
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