© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt
By Shreyashi Sanyal
(Reuters) – European stocks rose on Friday, tracking an upbeat sentiment from Wall Street on hopes of a faster global economic recovery, while Frankfurt shares lagged after data showed a decline in industrial orders.
The STOXX 600 gained 0.4% and was set for its longest winning streak since late December. The index was also up 3.7% for the week, on track for its best weekly performance since November.
Markets around the world were higher on expectations of a large stimulus by U.S. President Joe Biden's administration, while a pause in the Reddit-driven retail trading frenzy also helped lift investor sentiment. [MKTS/GLOB]
"Global markets are now revisiting a familiar script, with investors pushing broad asset classes higher on more signs pointing to the U.S. economic recovery," said Han Tan, market analyst at FXTM.
Germany's DAX index was flat after data showed orders for German-made goods fell more than expected in December, ending a seven-month streak of positive data as restrictions to contain the COVID-19 pandemic dragged down demand from other euro zone countries.
"Today's data shows that stricter lockdown measures since mid-December, as well as the Christmas break, have finally hit German industry … but at face value, this only looks like a temporary breather," strategists at ING wrote in a note.
Most European sector indexes were trading higher, with banks, travel and leisure and technology shares leading the advance, suggesting a risk-on trading environment.
With the reporting season underway, investors also parsed through earnings reports from European companies.
Sanofi (NASDAQ:SNY) SA gained 2% as the French drugmaker said it aimed to grow earnings per share this year after posting stronger-than-expected quarterly results.
Swedish builder Skanska fell 3.2% on cutting its outlook for the Swedish non-residential building market as it posted slightly lower quarterly profits than expected, while proposing an extra dividend to shareholders.
Shares in Vinci rose 5.3% and were the top boost to the STOXX 600, after Europe's biggest construction and concessions company beat full-year core profit forecasts, helped by some recovery in its contracting business.
Finnish oil refiner Neste fell 5.2%, to the bottom of the STOXX 600, after it issued a weak first-quarter outlook and unexpectedly cut dividend.
In deal-making, RTL Group jumped 7.8% after U.S. advertising platform Magnite agreed to buy the European broadcaster's video advertising group SpotX for $1.17 billion.Leave a comment