European shares end the week before Christmas higher
Reuters
Published Dec 23, 2022 03:33AM ET
Updated Dec 23, 2022 12:17PM ET
By Amruta Khandekar and Bansari Mayur Kamdar
(Reuters) -Europe's STOXX 600 was subdued on Friday in thin pre-holiday trading after a turbulent week where hopes of an improving economic outlook overshadowed fears of recession and hawkish central banks.
The STOXX 600 was flat by close and bound for a 0.6% weekly advance.
With the early gains, the index looked set to recoup a small part of last week's staggering 3.3% loss, which was driven by heightened concerns of a recession after the U.S. Federal Reserve and the European Central Bank signalled a prolonged rate-hike cycle.
U.S. data on Thursday, showing a tight labour market and economic resilience, exacerbated those worries and dented expectations of a so-called "Santa rally" before the year-end.
Still, upbeat earnings from Nike (NYSE:NKE) and FedEx Corp (NYSE:FDX) this week and improving consumer confidence in the United States and euro zone have offered some hope that the economic downturn caused by sharp interest rate hikes may not be as bad as feared.
Morale among Italian businesses and consumers rose in December, data showed on Friday, although the manufacturing sector was more downbeat.
"Investors have been weighing up some better-than-expected corporate earnings this week against macroeconomic concerns about rising interest rates and a global slowdown," said Victoria Scholar, head of investment at Interactive Investor.
Thin trading volumes around the holidays could also be exacerbating market moves, Scholar added.
UK's FTSE 100 and Ireland's ISEQ were subdued in half-day trading. Other European bourses were open all day, with Germany's DAX rising 0.2% by close.
European markets will be closed on Monday, Dec. 26, for the Christmas holiday.
On the economic data front, a report showed Spain's economy expanded 0.1% in the third quarter, slowing from a 2.0% growth rate in the previous three-month period.
Shares of miners rose 0.8% tracking firm copper prices on low inventories and hopes for economic recovery next year. [MET/L]
Industrials added 0.3%, while banks edged up after posting declines in the previous session.
The rate-sensitive tech sector fell 0.6%, limiting gains on the index.
Get The News You Want
Shares of French bank Credit Agricole (OTC:CRARY) and Italy's Banco BPM (BBPM) edged up on striking a long-term bancassurance partnership on Friday.
Bavarian Nordic added 3.9% after the vaccine maker signed a contract with the U.S. Department of Defense.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.