European Stocks Close Higher As Investors React To Earnings, Economic Data

(RTTNews) - European stocks closed higher on Friday, reacting to corporate earnings updates, regional economic data, and U.S. non-farm payroll data for the month of April.

Strong results from iPhone maker Apple Inc., and easing concerns about the outlook for interest rates contributed as well to the largely positive undertone in the markets.

Data showing an increase in the U.S. unemployment rate fueled expectations the Fed will start easing its policy by the third quarter.

European Central Bank policymaker Yannis Stournaras said he sees three rate cuts in 2024. Stournaras reportedly said in an interview that three rate cuts in 2024 is the more likely scenario after considering recent growth and inflation data.

The pan European Stoxx 600 climbed 0.46%. The U.K.'s FTSE 100, Germany's DAX and France's CAC 40 gained 0.51%, 0.59% and 0.54%, respectively. Switzerland's SMI ended 0.56% up.

Among other markets in Europe, Belgium, Finland, Greece, Netherlands, Norway, Sweden and Turkiye closed higher.

Denmark, Iceland, Poland, Portugal and Spain ended weak, while Austria and Russia closed flat.

In the UK market, Phoenix Group Holdings climbed nearly 6.5%. Berkeley Group Holdings, Persimmon, Taylor Wimpey, Barratt Developments, Prudential, Convatec Group and RightMove gained 3 to 5%.

St. James's Place, Flutter Entertainment, Rolls-Royce Holdings, Antofagasta, RS Group, Burberry Group, Scottish Mortgage, BAE Systems, United Utilities and Relx advanced 2 to 3%.

IHG ended down 2%. Beazley, Fresnillo and BP lost 1 to 1.6%.

In the German market, Henkel climbed about 7.2%. The household and personal products business company's shares soared after the company raised its sales and earnings outlook for 2024.

Puma, Rheinmetall, Vonovia, MTU Aero Engines and Siemens Energy gained 2 to 5%.

Zalando, Siemens Healthineers, Volkswagen, Sartorius, Siemens, Deutsche Bank, Qiagen, Mercedes-Benz, SAP and Merck also ended notably higher.

Daimler Truck Holding dropped about 3.7% after reporting a decline in Q1 global sales.

Fresenius Medical Care, Munich RE, Commerzbank, Allianz and Hannover Rueck lost 1 to 2%.

In Paris, Edenred, Saint-Gobain, STMicroElectronics, Kering, LVMH, Hermes International, Thales, Safran, Unibail Rodamco, Capgemini, WorldLine and Schneider Electric ended higher by 1 to 3%.

Credit Agricole gained 1% after posting a forecast-beating 55% jump in first-quarter net profit.

Societe Generale dropped more than 5%, paring early gains and declining sharply in afternoon trades. The financial services company backed guidance after reporting a smaller-than-expected 22% slide in first-quarter net income.

Stellantis, Danone, Legrand, AXA and Teleperformance lost 1 to 4%.

On the economic front, data from the statistical office INSEE showed France's industrial production declined unexpectedly in March, dropping by 0.3% in the month, reversing a 0.2% rise in the previous month. Economists had expected a 0.3% increase.

Similarly, manufacturing output contracted 0.5% in March, in contrast to a 1% rise in February, which was the biggest rise in nine months.

Euro area jobless rate remained unchanged at a record low for the fifth month in a row in March and the unemployment decreased, while a tight labor market could urge the European Central Bank to remain cautious even as policymakers gear up for an interest rate cut in June.

The seasonally adjusted unemployment rate was 6.5% in March, which is the same level as in the previous four months, data from Eurostat showed. The rate was in line with economists' expectations. A year ago, the jobless rate was 6.6%.

The jobless rate for the EU fell to 6% from 6.1% in February. The rate was at a similar level in the same month last year.

The UK service sector expanded at the quickest pace in nearly a year, spurred by a renewed strengthening of order books, final data from S&P Global showed.

The services purchasing managers' index rose to 55.0 in April from 53.1 in March. That was also above the flash score of 54.9. A score above 50 indicates expansion.

The UK service sector expanded for the sixth consecutive month in April.

The composite output index climbed to 54.1 in April from 52.8 in March, indicating the strongest upturn in private sector business activity in a year.