Sun, May 14, 2017 - Page 14 News List

European stocks rise as traders assess growth after Macron wins French vote

Bloomberg

European stocks on Friday advanced after their biggest drop since the middle of last month, as investors searched for fresh triggers for further gains after political risks in France diminished following the victory of French president-elect Emmanuel Macron.

European equity markets, already in a more upbeat mood after Macron’s victory, pushed higher after data showed the German economy expanded at a robust 0.6 percent in the first quarter compared with the previous three months.

The DAX in Germany closed up 0.5 percent, while Paris CAC40 rose 0.4 percent.

The STOXX Europe 600 rose 0.3 percent at the close, capping a third consecutive weekly advance. The index is up only 1 point from last week’s 395 points.

The benchmark had climbed to a 21-month high before sliding 0.5 percent on Thursday after Bank of England Governor Mark Carney said the bank had not modeled for a disorderly Brexit process.

“It seems that while political risk has subsided, investors remain far from convinced that further upside can be sustained without further evidence of a positive pickup in the economic numbers,” London-based CMC Markets chief market analyst Michael Hewson wrote in a note.

AstraZeneca PLC helped push healthcare shares to be the second-best performer among STOXX 600 industry groups.

The stock climbed 9 percent after the company said its lung-cancer drug significantly reduced the risk of the disease worsening or death in patients.

Mining shares slid 1.4 percent, halting a three-day rebound. The industry group is down about 13 percent from a February peak.

Equity markets in Frankfurt and London finished at record highs on Friday, while US stocks were dented for a second straight session by weak retailer earnings.

Additional reporting by AFP

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