European stocks higher
On Friday stocks in Europe edged higher despite a decline in Asia as investors assessed trade talks between the U.S. and China. The dollar advanced ahead of the monthly U.S. jobs report, which is expected to show a bounce-back in hiring following March’s weak numbers.
Basic materials and technology companies led gains in the Stoxx Europe 600 index as the euro slipped amid mounting concern about the region’s economic outlook. Financials fell after disappointing earnings reports from BNP Paribas SA, Societe Generale SA and HSBC Holdings Plc. U.S. equity-index futures were lower after stocks from Sydney to Hong Kong retreated earlier. U.S. Treasury yields were steady along with core European bonds.
Markets have been following talks between U.S. and Chinese officials in Beijing intently for signs that the world’s two biggest economies are making progress on trade, but there’s been limited progress so far. U.S. officials asked China to bring forward reductions in its trade surplus, raising the hurdle for any overarching deal, while state-run news agency Xinhua said the two parties agreed on some issues but disagreed on others.
Attention now turns to the health of the U.S. economy, with wage growth and jobs data due later Friday. Potential implications on monetary policy will be eyed after the Federal Reserve kept rates on hold earlier this week, saying inflation is near its target without suggesting any need to accelerate its gradual hiking path.
West Texas oil slipped as traders weighed an increase in stockpiles against concern about U.S. sanctions on Iran. Aluminum led most industrial metals higher.
The Stoxx Europe 600 Index increased 0.2 percent as of 10:37 a.m. London time. The U.K.’s FTSE 100 Index advanced 0.5 percent, the largest gain in a week. Germany’s DAX Index gained 0.2 percent; France’s CAC 40 Index decreased 0.2 percent. Futures on the S&P 500 Index fell 0.2 percent.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.