European shares climbed on Friday, trimming a weekly decline and interrupting the longest losing streak since February 2018 as consumer and retail stocks led a modest recovery.
The Stoxx 600 Index was 0.4% higher as of 8:08 a.m. in London. Technology stocks rebounded from sharp losses on Thursday spurred by a slump in Apple Inc. amid concerns over Chinese curbs on the use of iPhones in government-backed agencies and state companies. All European sectors were in the green in early trading Friday, aside from energy stocks.
The main regional benchmark is poised to drop for the first week in three, as this year’s rally in European equities falters. Investors are tracking slowing growth and sticky inflation in the region, with central banks expected to hold rates higher for longer. The focus next week will turn to the European Central Bank’s meeting and US inflation data.
Read more: ECB’s Hike-or-Pause Dilemma Going Down to Wire, Poll Shows
“This week has been a transitional one, with mainly profit taking from the last one,” said Ricardo Gil, head of asset allocation at Trea Asset Management. “The real back-from-summer kick-off will be next week and investors will soon start looking at positioning portfolios for the end of the year.”
European equities experienced a 26th week of outflows at $66 million, according to a Band of America note citing EPFR Global data.
SECTORS IN FOCUS:
- Apple suppliers and the broader technology sector may extend declines after the iPhone maker fell for a second day on concerns over China curbs.
For more on equity markets:
- Equities’ Fate Still Interlocked With Rates Path: Taking Stock
- M&A Watch Europe: Orange, Repsol, Stroeer, Eni
- Smurfit Deal New Setback for Struggling London Market: ECM Watch
- US Stock Futures Unchanged; Smith & Wesson Brands Gains
- LSE Investors Sell Another £2 Billion Stake: The London Rush
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Author: Macarena Muñoz