European stocks end higher at the end of volatile week

European stocks closed slightly higher on Friday, shaking off early weakness sparked by news that U.S. President Donald Trump tested positive for COVID-19 as investors pinned hopes on more stimulus.

The pan-European STOXX 600 rose 0.3%, capping another volatile week which started with a bout of bargain hunting in beaten-down sectors that helped the benchmark record a 2% weekly gain. European bourses started the day with losses of more than 1% after Trump said that he and his wife Melania had tested positive for the coronavirus and were going into quarantine, adding to uncertainty around the 3 November election. Helping markets stabilise into the close were hopes of more U.S. stimulus after data showed job growth slowed more than expected in September in the world’s largest economy.

Meanwhile, euro zone inflation fell deeper into negative territory last month, raising pressure on the European Central Bank to add stimulus. A second wave of coronavirus cases in Europe has kept investors on edge, with Paris set to be placed on maximum COVID19 alert from as soon as Monday, a move likely to force the closure of restaurants and bars and impose further restrictions on public life.

German Chancellor Angela Merkel said she had no breakthrough to announce in European Union talks with Britain but remained optimistic that sealing a new trade deal was still possible before the end of the year.

The Labor Department’s closely watched employment report on Friday was the last before the presidential election. September’s employment gains were the smallest since the jobs recovery started in May and left the U.S. labor market a long way from recouping the 22.2 million jobs lost in March and April, indicating slower growth heading into the fourth quarter.

Gold posted its best week in eight even after paring gains, while the yen advanced sharply before also retreating a bit.

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.