By Carla Mozee and Sara Sjolin, MarketWatch
European equities score 3.1% weekly gain
Most European stocks ended a choppy session higher on Friday,
getting a boost from the U.S. where the main indexes rallied after
better-than-expected labor market data.
German stocks, however, trailed the rest of Europe after data on
the country's exports and factory output indicated a slow start in
activity at the start of 2018.
How are markets moving?
The Stoxx Europe 600 index rose 0.4% to close at 378.24, after
darting in and out of negative territory during the session. For
the week, the benchmark rose 3.1%.
Germany's DAX 30 index fell 0.1% to 12,346.68, eating into
Thursday's gain of 0.9%. But the index rose 3.6% for the week,
marking its best week since December 2016, according to FactSet
data.
France's CAC 40 index turned up 0.4% to end at 5,274.40, and the
U.K.'s FTSE 100 index ended 0.3% higher at 7,224.51
(http://www.marketwatch.com/story/ftse-100-struggles-after-trump-signs-tariff-order-2018-03-09).
The euro bought $1.2329, up from $1.2313 late Thursday in New
York.
What's driving the market?
European benchmarks hit their highest levels of the session
after data showed the U.S. economy added 313,000 new jobs in
February
(http://www.marketwatch.com/story/us-adds-313000-jobs-in-february-in-biggest-gain-in-a-year-and-a-half-2018-03-09),
blowing out expectations of 222,000 in a MarketWatch poll of
economists. February's figure signaled that the U.S. economy has
room to keep expanding, and the U.S. is a key business and consumer
market for many European companies.
However, wage growth moderated, and that could tamp down worries
among investors that rising pay will lead to higher inflation and
prompt the Federal Reserve to raise interest rates more than the
market has anticipated. A slower pace of Fed hikes is seen as good
for the stock market.
U.S. stocks swung firmly higher
(http://www.marketwatch.com/story/us-stock-futures-hold-steady-as-a-nervous-wait-for-jobs-data-begins-2018-03-09)
after the report.
But still hanging over Europe was the prospect for a trade war
that could be spurred by U.S. President Donald Trump's decree
signed late Thursday to impose tariffs of 25% on imported steel and
10% on aluminum. Canada and Mexico were exempted from the levies as
the U.S. attempts to renegotiate the North American Free Trade
Agreement.
Read:EU lines up its salvos to fight Trump tariffs
(http://www.marketwatch.com/story/eu-lines-up-its-salvos-to-fight-trump-tariffs-2018-03-08)
"We hope we can get confirmation that the EU is excluded from
this," said European Union Trade Commissioner Cecilia Malmstrom on
Friday at a forum in Brussels. The tariffs will go into effect
March 23. While the EU shares concerns about overcapacity in the
steel market, "this isn't the right way" to deal with the issue,
she said.
Read:EU lines up its salvos to fight Trump tariffs
(http://www.marketwatch.com/story/eu-lines-up-its-salvos-to-fight-trump-tariffs-2018-03-08)
See:ECB's Draghi: 'If you put tariffs against your allies, one
wonders who the enemies are'
(http://www.marketwatch.com/story/ecbs-mario-draghi-if-you-put-tariffs-against-your-allies-one-wonders-who-the-enemies-are-2018-03-08)
In other geopolitical developments, Trump accepted an invitation
to meet North Korean leader Kim Jong Un
(http://www.marketwatch.com/story/trump-accepts-invitation-to-meet-north-korean-leader-kim-jong-un-2018-03-08),
the White House said late Thursday. South Korea's national-security
adviser said Kim reaffirmed that he's prepared to suspend nuclear
and missile tests while North Korea engages in talks.
Read:How the Trump-Kim meeting news moved markets
(http://www.marketwatch.com/story/how-the-trump-kim-meeting-news-moved-markets-2018-03-09)
What strategists are saying
"U.S. markets have sprinted higher in the wake of an NFP report
that may be justifiably described as a 'Goldilocks' update, one
that harks back to the easy days of 2017. Jobs are being created at
a high rate, which suggests plenty of slack in the US economy,
while wages are not growing as fast as previously thought," said
Chris Beauchamp, chief market analyst at IG, in a note.
"Thus, fears of the Fed moving into higher gear with tightening
have receded this afternoon, capping gains in the dollar and
causing stocks to rocket. It feels like a return to the good old
days, particularly when investors have just come through an ECB
meeting that reiterated a commitment to loose policy," he
added.
Which stocks were in focus?
Shares of steelmaker ArcelorMittal SA (MT) fell 0.6% in the wake
of Trump's tariff action.
Inmarsat PLC (ISAT.LN) fell 6.7% after the U.K. satellite
operator slashed its final dividend
(http://www.marketwatch.com/story/inmarsat-2017-profit-drops-warns-on-ligado-2018-03-09)
to 12 U.S. cents a share and warned that cash payments from its
collaboration with Ligado Networks LLC beyond the end of 2018 are
in doubt.
Deutsche Lufthansa AG (LHA.XE) lost 5.6% after the airline
released traffic numbers for February.
GVC Holdings PLC (GVC.LN) climbed 5% as the online gambling
company said its pretax loss for 2017 narrowed
(http://www.marketwatch.com/story/gvc-2017-loss-narrows-on-higher-revenue-margins-2018-03-09)on
the back of higher gaming revenue and margins.
Economic data
German exports fell by 0.5%
(http://www.marketwatch.com/story/german-exports-fall-at-fastest-rate-since-june-2018-03-09)
in seasonally adjusted terms, the sharpest decline in exports since
last June, said the Destatis statistics agency.
German factory orders declined 0.1% in January on the month,
missing expectations of a 0.4% gain in a survey of analysts polled
by The Wall Street Journal.
French industrial production fell sharply
(http://www.marketwatch.com/story/french-industrial-production-falls-unexpectedly-2018-03-09)
and unexpectedly in January, by 2%, on declines in energy and
manufacturing output, statistics agency Insee said Friday.
(END) Dow Jones Newswires
March 09, 2018 12:10 ET (17:10 GMT)
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