Euro shares higher on U.S. confidence, Greek hopes;DAX up 0.95%

Investing.com – European shares closed mostly higher Friday, as U.S. consumer sentiment gave a bullish surprise and Greek political progress triggered the risk on trade.
 
At the close of European trade, the EURO STOXX 50 closed higher by 0.32%, France's CAC 40 slipped 0.01% and Germany’s DAX soared 0.95%.  Meanwhile, in the U.K. the FTSE 100 traded higher by 0.57%.
 
Initially depressing stocks, JP Morgan Chase & Co reported a USD2 billion trading loss sending investors fleeing from equities sending early prices sharply lower.
 
However, U.S. UoM consumer sentiment rose unexpectedly last month, preliminary data indicated  Friday, resulting in a price reversal in worldwide equity markets.

In a report, the University of Michigan said that consumer sentiment rose to a seasonally adjusted 77.8, from 76.4 in the preceding month.

Analysts had expected UoM consumer sentiment to fall to 76.2 last month.
 
In  Europe, Antonis Samaras, leader of Greece’s New Democracy Party, reported that the four rival parties have accepted terms of no exit from the euro region..

On Wednesday, Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government, pushing the debt-stricken country closer to its second election in a few weeks.

In the U.S., the Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending May 5 fell to 367,000, defying expectations for an increase of 1,000 to 369,000.

The previous week’s figure was revised up to 368,000 from 365,000.

Meanwhile, a separate report indicted the U.S. trade deficit widened to USD51.8 billion in March from deficit of USD45.4 billion in February. 
 
Analysts had expected the U.S. trade deficit to widen to USD50.0 billion.

Data also indicated that import prices in the U.S. fell more-than-expected in April, declining 0.5% after a 1.5% the previous month. Analysts had expected import prices to fall 0.1% in April.
 
Meanwhile, a Chinese report indicated that the country’s industrial output advanced 9.3 percent in April from a year earlier. This missed the average analysts estimate of 12%.
 
Barclays gave back 3.5% on JP Morgan loss fears.
 
Vedanta Resources fell with copper on Chinese economic fears.
 
Catlin Group gained 1.2% on a sales increase.

In bearish news, gross domestic product in the 17-nation euro zone will drop 0.3 percent, the European Commission reported today. Greece will have the deepest contraction, with GDP declining 4.7%, while the economies of Spain and Italy are seen shrinking 1.8% and 1.4% respectively. Portugal’s GDP will drop 3.3%, it was reported.