European stocks recovered on Friday, thanks to optimistic results from LVMH Moët Hennessy Louis Vuitton and Daimler, while US stock futures also rose as investors expected data on retail sales.
Stoxx Europe 600 Index XX: SXXP
rose 0.8% to 365.78 after closing 2% on Thursday, the biggest one-day drop since Sept. 21. The index targets a weekly loss of just over 1%. The German DAX DX: DAX
rose by 0.6%, the French CAC 40 FR: PX1
rose 1.4% and FTSE 100 UK: UKX
increased by 1%.
American stock futures DJIA FUTURES
SP 500 FUTURE
NASDAQ 100 FUTURE
were modestly higher after a weak final on Thursday due to unfavorable job data and a lack of progress on the coronavirus aid package. Retail sales, industrial production and consumer sentiment surveys are set to take place in the United States on Friday.
Investors remain concerned about the growing incidence of coronavirus in both the United States and Europe and the effect it has on economies. Several European countries have been forced to tighten restrictions this week, moves that included an evening class in Paris and bans on various households gathering in London.
Politics also remains a topic in London, where Prime Minister Boris Johnson was due to make a statement Friday on whether Britain would resume Brexit talks with the EU after an unconvincing summit this week.
European Commission President Ursula von der Leyen left the summit on 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 clothing sector was profitable on Friday, thanks to a 6% jump in shares of CAC 40 in the heavyweight category LVMH Moet Hennessey IT: LVMH.
The luxury goods manufacturer reported strong growth in its Louis Vuitton and Dior brands, in part offsetting the sharp decline elsewhere.
This news gave a boost to the entire sector with shares of Hermès International FR: RMS
and Burberry UK: BRBY
growth of 3%, and Kering FR: KER
The automotive sector also benefited, aided by 3% growth in Daimler DE: DAII
shares after the German carmaker reported preliminary gains for the third quarter above the market consensus and said it expects a strong balance by 2020.
This is because the data show that car registrations in the European Union increased for the first time in a year in September, with a profit of 3.1%. However, this was a mixed picture in the region, with gains in Germany and Italy but declining in France and Spain. Renault FR: RNO
shares rose 1% in Paris.
And Volvo SE: VOLV
reported better-than-expected net profit in the third quarter due to a recovery in demand for trucks and construction equipment. Shares rose 3%.
Top profit for Stoxx 600, Thyssenkrupp XE: TKA
shares rose 16%. The UK-based international industrial and metal band Liberty House may announce an offer for the losing steel division of Thyssenkrupp as early as Friday, the Financial Times reported, citing sources.