European equities rebounded on Friday, thanks to upbeat results from LVMH Moët Hennessy Louis Vuitton and Daimler, while US equity futures also rallied pending retail sales data.
The Stoxx Europe 600 index
was up 0.8% to 365.78, after closing 2% on Thursday, the biggest one-day drop since September 21. The index is set for a weekly loss of just over 1%. The German DAX
increased by 0.6%, the French CAC 40
was up 1.4% and the FTSE 100
increased by 1%.
US stock futures
they were modestly higher, after a weak finish on Thursday driven by pessimistic jobs data and a lack of progress on a coronavirus relief package. Retail sales, industrial manufacturing and a consumer sentiment survey are ahead in the US on Friday.
Investors remain concerned about the rise in coronavirus cases in both the US and Europe and the effect these are having on economies. Several European countries were forced to tighten restrictions this week, moves that included a curfew in Paris and a ban on reunions of different families in London.
Politics also remains a topic in London, where Prime Minister Boris Johnson was expected to make a statement on Friday that the UK will continue Brexit talks with the EU, following an inconclusive summit this week.
European Commission President Ursula von der Leyen left the summit Thursday afternoon and is in quarantine after a member of her staff tested positive for COVID-19. She said she tested negative for the virus.
The apparel sector was one of the main gains on Friday, thanks to a 6% rise in shares of the CAC 40 heavyweight LVMH Moet Hennessey
The luxury goods manufacturer has seen strong growth in its Louis Vuitton and Dior brands, partially offsetting strong declines elsewhere.
That news gave a boost to the entire industry, with shares of Hermès International
up 3% and Kering
The automotive sector also grew, helped by a 3% increase in Daimler
shares after the German automaker reported preliminary third-quarter earnings above market consensus and said it expects a strong remainder of 2020.
This is because data showed that car registrations increased in the European Union for the first time in a year in September, an increase of 3.1%. However, it was a mixed picture across the region, with earnings in Germany and Italy, but falling in France and Spain. Renault
shares rose 1% in Paris.
reported a better-than-expected net profit in the third quarter, thanks to the recovery in demand for trucks and construction equipment. The shares were up 3%.
A top gainer for the Stoxx 600, Thyssenkrupp
shares increased by 16%. UK-based international industrial and metallurgical group Liberty House may announce a bid for Thyssenkrupp’s loss-making steel division as soon as Friday, the Financial Times reported, citing sources.