Major European Markets Close Higher

(RTTNews) - The major European markets closed higher on Friday with several benchmark indices posting multi-month or multi-year highs, as investors focused on earnings updates.

Data showing expansion in manufacturing activity in Eurozone and the U.K. aided sentiment.

Mining stocks fell on lower commodity prices. Concerns about monetary tightening also limited markets' upside.

The pan European Stoxx 600 gained 0.25%. The U.K.'s FTSE 100 edged up 0.15%, Germany's DAX climbed 0.54% and France's CAC 40 surged 0.51%. Switzerland's SMI advanced 0.61%.

Other markets in Europe ended mixed. Czech Republic, Denmark, Greece, Netherlands and Portugal ended higher.

Finland, Iceland, Ireland, Norway, Poland, Spain, Sweden and Turkiye closed weak, while Austria, Belgium and Russia ended flat.

In the UK market, Dowlai Group shares surged 4.3%. Smith & Nephew, Next, RS Group, Flutter Entertainment, Diageo, Experian, Tesco, Whitbread, AstraZeneca and Bunzi gained 1.4 to 2.6%.

Anglo American Plc and Rio Tinto lost about 6% and 5.7%, respectively. Fresnillo climbed 3.2%. Antofagasta, Endeavour Mining, Melrose Industries and Glencore drifted down 2 to 3%.

In Paris, Essilor rallied 5.7% and L'Oreal gained about 2.5%. Eurofins Scientific, Sanofi, Pernod Ricard and Veolia gained 1 to 1.7%.

ArcelorMittal ended lower by nearly 4%. Teleperformance, Airbus Group, Renault, Carrefour and Credit Agricole also closed notably lower.

In the German market, SAP gained about 5% despite the company lowering its outlook due to the divestment of its Qualtrics unit.

Fresenius Medical Care and Merck gained 3.8% and 3.3%, respectively. Fresenius, Siemens Healthineers, Porsche, Puma, Beiersdorf, Sartorius and Adidas moved up 1 to 2%.

Mercedes-Benz surged higher after posting strong preliminary results for the first quarter of 2023.

BASF tumbled more than 2%. Daimler Truck Holding, Covestro and Commerzbank also ended notably lower.

On the economic front, UK retail sales declined more than expected in March, as Britons shopped less amid the rainy weather and also due to high inflation that is pushing up the cost of living and has added strength to the case for yet another rate hike from the Bank of England next month.

The volume of retail sales including motor fuel decreased 0.9% from the previous month, preliminary data from the Office for National Statistics showed Friday. Economists had forecast a 0.5% fall.

The latest decline came after two months of growth. February's gain was revised down to 1.1% from 1.2%.

The UK private sector expanded for the third successive month in April to the strongest level in a year, driven by a sharp upturn in the services economy, while manufacturing remained in the contraction zone, flash survey results from S&P Global showed.

The flash Chartered Institute of Procurement & Supply composite output index climbed to 53.9 in April from 52.2 in March. The expected score was 52.5.

Eurozone private sector activity expanded at the fastest pace in nearly a year in April, driven by the reviving demand in the service sector and was accompanied by a sharp increase in employment amid a moderation in inflationary pressures and resilient business confidence, the results of the latest purchasing managers' survey by S&P Global showed Friday.

The seasonally adjusted HCOB flash composite output index rose to 54.4 in April from 53.7 in the previous month. The score was expected to remain steady at 53.7.

The reading rose for the sixth month in a row and remained above the critical 50.0 threshold for the fourth successive month. This suggested the biggest growth in the private sector since May 2022.