By Sara Sjolin and Carla Mozee, MarketWatch
LONDON (MarketWatch) -- Most European stock markets pushed
higher late Friday asstrong euro-zone consumer confidence climbed
to a six-year high.
The Stoxx Europe 600 index put on 0.2% to 328.44, setting it on
track for a 2% weekly gain.
The U.K.'s FTSE 100 index gained 0.4% to 6,567.35 6,543.54, led
by resource firms. Anglo American PLC gained 2.2% and BP PLC (BP)
added 1%.
Burberry Group PLC fell 2% after Bank of America Merrill Lynch
downgraded its rating of the luxury-goods company to neutral from
buy.
Among other country-specific indexes, Germany's DAX 30 index
rose 0.8% to 9,365.33, and France's CAC 40 index was lifted 0.5% to
4,347.28. Shares of Bouygues SA fell 1.8% after the French company
on Thursday raised the cash portion of its offer to acquire SFR,
Vivendi SA's mobile unit. Vivendi shares lost 1%.
The indexes briefly dipped into red territory during the
session, but moved higher again as U.S. markets advanced and the
report on euro-zone consumer confidence beat forecasts. The
European Commission said the flash consumer-confidence indicator
for March rose to -9.3 from -12.7, outstripping expectations of a
-12.4 reading and climbing to the highest level since 2007.
Howard Archer, chief U.K. and European economist, called the
data encouraging news for the euro zone and suggest that "so far,
at least, the Ukraine crisis has not worried consumers unduly."
"Hopefully, improved consumer confidence, stabilizing labor
markets and very low consumer price inflation (...) will
increasingly underpin consumer spending and help euro-zone economic
recovery to gain traction over the coming months," he said in
emailed comments.
European stocks built on a modest rise at the end of Thursday's
session, sparked by , in part on a report showing a bounce-back in
the Philadelphia-area manufacturing sector. Asian stocks overnight
followed up with gains for major indexes and U.S. stocks also
traded higher on Friday.
Europe's spring election season will begin this weekend with the
first round of municipal elections in France, noted Win Thin, head
of emerging-market currency strategy at BBH.
"Although the Socialists may hold on to Paris, the risk is that
the Prime Minister's party is soundly trounced this weekend," wrote
Thin. "Many will watch how Le Pen's National Front does, which is
running around twice the candidates they did in the last municipal
elections, as it gears up for the EU parliamentary elections in
May." Read Delamaide on how the French vote could show a rise in
anti-euro feelings.
In Russia, the MICEX Index dropped 1.1% to 1,305.20 after the
U.S. imposed sanctions on four influential Russian businessmen and
a bank, saying the penalties could apply to anyone who "has acted
for or on behalf of, or that has provided material or other
support, to a senior Russian government official." U.S. President
Barack Obama on Thursday said the country was preparing broader
sanctions should Russia take further steps into Ukraine.
Meanwhile, European Union leaders on Thursday agreed to asset
freezes and visa bans on 12 more Russian officials, but sidestepped
penalizing powerful oligarchs or companies.
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