European equities recovering following biggest five day loss since November

Equities are stabilizing following a rebound in U.S. stocks Thursday, after former FBI Director Robert Mueller was appointed as special counsel to investigate Russian efforts to influence the 2016 American election, as well as possible collusion by Trump campaign associates.

On Friday European stocks rose as investors assessed the extent of recent declines that dragged equities to a two-week low. The Stoxx Europe 600 Index added 0.6 percent at the close, trimming a weekly decline to 1 percent, the biggest five-day loss since November. The benchmark tumbled 1.7 percent in the previous three sessions as U.S. President Donald Trump faced controversies surrounding Russia, heightening political risk sentiment.

The euro strengthened 0.7 percent to $1.1182, bringing its gain this week to 2.2 percent. The British pound stood 0.5 percent higher at $1.3002. The yen was little changed at 111.45 per dollar after falling 0.6 percent on Thursday. The currency is up 1.8 percent for the week, its strongest performance in a month.

West Texas crude rose 1.9 percent to $50.30 a barrel in New York, poised for a weekly increase of about 5 percent, the most since March. Optimism is growing that OPEC will reaffirm efforts to drain a global glut at their meeting in Vienna on May 25. Gold was set for the biggest weekly gain in more than a month as investors weigh political risks in U.S.

The earnings outlook in Asia as a whole, meanwhile, seems to have been less impressive. Earnings reports by Japan’s three mega banks pointed to a fourth straight fall in combined annual profit, even as the impact of negative interest rates begins to ease.

Commodity prices are still well above last year’s lows, and companies today are much leaner. And if this week’s oil rally is any indication, there is upside as well as downside.