UKX FTSE 100 Index

By Carla Mozee, MarketWatch

European stocks ended slightly higher on Friday, extending their weekly gains as concerns over a potential global trade war remained on the back burner and investors instead focused on a raft of prominent bank earnings out of the U.S.

How markets are performing

The Stoxx Europe 600 index ended 0.2% higher at 385.03, pushing the benchmark 0.7% higher for the week.

The U.K.'s FTSE 100 index rose 0.1% to 7,661.87. France's CAC 40 index rose 0.4% to 5,429.20, and Germany's DAX 30 index tacked on 0.4% to close at 12,540.73.

The euro fell to $1.1668 from $1.1671 late Thursday. The pound traded at $1.3216, up from $1.3206.

What's driving the market

Stocks in Europe tracked gains in Asia (http://www.marketwatch.com/story/asian-markets-continue-end-of-the-week-rally-2018-07-12) and the U.S (http://www.marketwatch.com/story/us-stocks-poised-for-upbeat-session-as-bank-earnings-steal-center-stage-2018-07-13)., where investors ignored the ongoing trade spat between Washington and Beijing and looked ahead to the earnings season that kicked off in earnest on Friday in the U.S. JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and Wells Fargo & Co. (WFC) all reported earnings before Friday's opening bell, with bank shares mixed after the results.

In the U.K., stocks opened with firm gains as the pound slumped after U.S. President Donald Trump, in an interview with The Sun (https://www.thesun.co.uk/news/6766531/trump-may-brexit-us-deal-off/) newspaper published late Thursday, said U.K. Prime Minister Theresa May's plan for a so-called soft Brexit would damage the likelihood of a trade deal between Britain and the U.S. Sterling weakness can lift revenue made overseas by multinational companies, which are heavily weighted on the U.K.'s FTSE 100 index.

However, Trump was seen as backtracking on the criticism on Friday, saying at a joint news conference that he still supports a post-Brexit trade deal with the U.K.

May's government on Thursday published a 120-page report that provided further details on the vision for the U.K.'s future relationship with the European Union, which was agreed at a Cabinet meeting last week. The strategy calls for frictionless trade in goods between the U.K. and the EU, prompting critics to say that wouldn't amount to a clean break by the U.K. from the bloc.

What strategists are saying

"Expectations [for earnings] are high, and for dominant U.S. banks at least, prospects are solid in view of rising rates, and unabated improvement in inflation, output, growth and the labor market in the first half of the year. This helps account for Wall Street's expectation of a 21% advance in earnings growth for financials in Q2, and a close to 21% from all S&P 500 companies as a whole," said City Index market analyst Ken Odeluga in an note.

"With earnings expectations in Europe more modest, resignation could be even swifter in the event of disappointment in coming weeks," Odeluga added, who noted that expectations are for 3% growth in net income for Stoxx 600 companies, excluding the volatile energy-sector earnings, according to the consensus forecast from Thomson Reuters.

"Aside from chronically sluggish utilities and amongst large telecoms, dips in technology, and health-care sector earnings should also be a worry," he said.

Read:Dow falls after U.S. unveils new China tariffs (http://www.marketwatch.com/story/dow-futures-tumble-230-points-after-us-unveils-new-china-tariffs-2018-07-11)

Stock movers

Altran Technologies SA (ALT.FR) plunged 28% after the engineering firm said it found at least $10 million in forged purchase orders (http://www.marketwatch.com/story/altran-finds-10-mln-in-forged-orders-at-aricent-2018-07-13) in the accounts of Aricent, which it recently bought for 1.7 billion euros ($1.9 billion).

Hays PLC (HAS.LN) jumped 8.6% as the recruitment company said it expects full-year operating profit to be marginally ahead of consensus expectations (http://www.marketwatch.com/story/hays-upbeat-on-full-year-operating-profit-2018-07-13)on growth in most of its markets.

Siemens Healthineers AG shares (SHL.XE) fell 2.2% following a ratings downgrade to hold from buy at Deutsche Bank, saying a more than 30% rally from the initial public offering reflects prospects for the medical technology company to deliver on its strategic goals.

DCC PLC (DCC.LN) leapt 3.7% after the support-services group backed its outlook for fiscal 2019 (http://www.marketwatch.com/story/dcc-buys-2-businesses-backs-profit-growth-outlook-2018-07-13) and said it acquired two businesses for a combined value of GBP110 million ($145 million).

(END) Dow Jones Newswires

July 13, 2018 12:40 ET (16:40 GMT)

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