European index increases from 1½ month low while recording biggest weekly decline of year

European stocks closed higher on average Friday despite the U.S. hiking duties on $200 billion worth of Chinese products.

The pan-European STOXX 600 climbed, with the export-heavy German DAX index rising by 0.85%. All but three sectors closed in positive territory, with only the autos sector, with its heavy exposure to China, edging below the flatline.

Surges for German multinational Thyssenkrupp and robust defensive stocks helped equities on the continent avert the losses seen among their US peers, which slid on persisting worries about US-China trade.

Elsewhere, Uber shares opened 6.7 per cent below their initial public offering price of $45 in their long-awaited market debut. Rival Lyft dropped 9 per cent to a record low.

The Stoxx 600 index gained 0.3 per cent, lifting off an around 1½-month closing low clocked on Thursday. The pan-European index still recorded its biggest weekly decline this year, down 3.4 per cent, bruised by trade worries.

Washington increased tariffs on Chinese goods from 10% to 25% overnight. China immediately said it would retaliate, though did not specify how. But European investors have not been spooked by this latest chapter in ongoing trade tensions between the two economic superpowers.

The U.K. posted its first-quarter GDP data on Friday, showing a quarter-on-quarter economic expansion of 0.5%, the country's highest level of growth since 2017. Sterling was little changed, however, as uncertainty around Brexit continued to weigh and reports that bi-partisan talks between Britain's leading political parties were on the verge of collapse.

On Iran, Trump said he could not rule out a military confrontation after Tehran relaxed restrictions on its nuclear programme in response to U.S. sanctions imposed following Trump’s withdrawal of the United States from the accord with a year ago.

Oil prices erased much of gains that were made after Trump’s comments on Xi’s letter raised hopes for a deal. Brent rose 0.2% to $70.51 a barrel while U.S. West Texas Intermediate (WTI) crude gained 0.4% to $61.96.