By Sara Sjolin and Carla Mozee, MarketWatch
German election on Sunday is also in focus
European stocks edged mostly higher Friday, with upbeat economic
data helping the market to move past weakness stemming from the
latest round of tensions between North Korea and the U.S.
The Stoxx Europe 600 index closed up by a slight 0.1% at 383.22,
keeping intact a 0.7% weekly advance. The pan-European index on
Thursday ended higher
(http://www.marketwatch.com/story/european-stocks-step-higher-with-bank-gains-providing-a-lift-2017-09-21),
boosted by bank stocks after hints from the U.S. Federal Reserve
that more rate hikes are coming this year and next.
Regional stocks came off session lows earlier in the session
after IHS Markit said business-activity data for the eurozone were
overall upbeat, largely beating analyst forecasts. The composite
purchasing-managers index for the currency bloc rose to 56.7 in
September, marking a four-month high.
(http://www.marketwatch.com/story/eurozone-pmi-point-to-stronger-3q-growth-2017-09-22)
France's composite PMI jumped to a 76-month high, while
Germany's PMI rose to a 77-month high.
"Today's PMIs support the central bank's upward revisions to its
staff projections for GDP growth in the near term," said Morgan
Stanley economists Daniele Antonucci and Joao Almeida in a note
Friday. The European Central Bank is on course to announce a
monthly reduction in its bond-buying activity, they added.
"While we see the key decision to be announced on October 26,
it's quite possible that the complexity of the QE programme is such
that not all details will be revealed at that meeting, with some of
the technical aspects deferred to December," the economists
said.
The euro climbed to an intraday high of $1.2005 after the PMI
releases, up from $1.1941 on Thursday.
European stocks had opened lower Friday as trading got under way
with news that North Korea's Foreign Minister Ri Yong Ho said
Pyongyang might conduct a hydrogen bomb test of "unprecedented
scale" in the Pacific Ocean.
Ri's comments at a United Nations meeting in New York came
shortly after Kim Jong Un released a statement threatening to make
U.S. President Donald Trump "pay dearly" for his fiery speech to
the U.N. on Tuesday. In that speech, Trump threatened to "totally
destroy" North Korea.
Read: Kim Jong Un calls Trump 'mentally deranged U.S. dotard,'
setting off scramble for dictionaries
(http://www.marketwatch.com/story/kim-jong-un-calls-trump-mentally-deranged-us-dotard-setting-off-scramble-for-dictionaries-2017-09-21)
(http://www.marketwatch.com/story/kim-jong-un-calls-trump-mentally-deranged-us-dotard-setting-off-scramble-for-dictionaries-2017-09-21)"It
did not take long for North Korea to react to President Trump's
recent address to the United Nations General Assembly," analysts at
FxPro said in a note.
"Needless to say, these comments have caused a degree of risk
off in the markets with safe-havens benefiting," they added.
Gold prices remained modestly higher Friday, rising 0.2%, while
the yen climbed against the dollar.
(http://www.marketwatch.com/story/kim-jong-un-calls-trump-mentally-deranged-us-dotard-setting-off-scramble-for-dictionaries-2017-09-21)Indexes:
Germany's DAX 30 index closed less than 0.1% lower at 12,592.35,
ahead of the country's general election on Sunday.
Sitting Chancellor Angela Merkel is widely expected to secure a
fourth term in power, but the question is who she teams up with for
a coalition.
Read:5 things you need to know about the German election
(http://www.marketwatch.com/story/5-things-you-need-to-know-about-the-german-election-2017-09-21)
(http://www.marketwatch.com/story/5-things-you-need-to-know-about-the-german-election-2017-09-21)Also
read:Don't call the German election boring -- it could be a huge
shift for the eurozone
(http://www.marketwatch.com/story/dont-call-the-german-election-boring-it-could-mean-a-huge-shift-for-the-eurozone-2017-09-18)
The U.K.'s FTSE 100 index rose 0.6% to close at 7,310.64,
extending gains as the pound fell as U.K. Prime Minister Theresa
May, in Florence, spoke about the U.K.'s exit from the European
Union. Pound strength tends to hurt shares of multinational
companies on the London benchmark.
"The fact that the pound is lower after the speech suggests that
May failed to delver everything that was expected, including the
rumoured divorce bill that the U.K. is willing to pay, although
many believe it to be EUR20 billion," said City Index research
director Kathleen Brooks in a note. "Thus, the EU's response to
May's speech is likely to be even more important for U.K. asset
prices."
France's CAC 40 index finished 0.3% higher at 5,281.29, lifted
by L'Oréal and Carrefour.
Stock movers: Shares of L'Oréal SA (OR.FR) leapt 2.5% after the
death of L'Oréal heiress Liliane Bettencourt
(http://www.marketwatch.com/story/loreal-heiress-liliane-bettencourt-dies-aged-94-2017-09-21)
sparked takeover speculation.
Staying in France, shares of Carrefour SA (CA.FR) rose 0.2%
after the supermarkets chain said it has formed a new group
executive committee aimed at improving management and coordination
between departments.
On a downbeat note, shares of Smiths Group PLC (SMIN.LN) fell
nearly 6% after reporting earnings
(http://www.marketwatch.com/story/smiths-group-pretax-profit-soars-on-wider-margins-2017-09-22).
(END) Dow Jones Newswires
September 22, 2017 13:03 ET (17:03 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Feb 2024 to Mar 2024
FTSE 100
Index Chart
From Mar 2023 to Mar 2024