European markets open higher at the end of a volatile week
European markets opened higher on Friday with most stock indexes rising modestly after a volatile week in which company earnings and growth worries hit stocks, though the euro sank after a weaker-thanexpected German business survey.
Italian stocks led the bounce in equities, rallying hard after the country’s bond yields fell after a press report that EU Affairs Minister Paolo Savona is considering resigning over the government’s decision to challenge European Union budget rules.
The pan-European STOXX 600 index was up 0.3 percent. Europe’s performance on Friday stood in contrast to Asia, where steep losses in Chinese markets hit stocks amid lingering trade war tensions and worries about global growth.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.23 percent as Chinese blue-chips tumbled 2 percent and the Shanghai Composite index lost 2.2 percent.
The MSCI All-Country World Index of stocks was down 0.03 percent on the day, and set for a second week in the red.
In the currency market, the pound GBP was down 0.2 percent, buying $1.2844 after rising more than 1 percent on the news of the draft agreement between Britain and the EU, which describes a close postBrexit relationship. The agreement follows a draft treaty last week that set the terms for Britain’s departure from the EU in March.
But the deal faces a rocky ride once it reaches a deeply divided British parliament containing hardline eurosceptic and staunch pro-EU factions, and various shades of grey in-between.
China calls for ‘equal’ trade talks with U.S.
In commodities markets, oil prices fell to their lowest since late 2017 in choppy trading, weighed down by an emerging crude supply overhang and a darkening economic outlook.
U.S. crude was trading down 2.2 percent at $53.43 after coming within 5 cents of an October 2017 low reached earlier in the week. Brent crude LCOc1 futures were last down 0.7 percent at $62.12 a barrel.
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.