In European Equity Markets stocks ended a mixed week on a positive note on Friday, helped by well-received company earnings and buoyant economic data, while mining stocks were hit by weaker metal prices. The STOXX 600 closed up 0.5 percent, bouncing back from losses seen in the previous session. Beazley was a top European gainer, up 7.2 percent after the UK insurer reported a stronger than expected rise in full-year pretax profit. Well-received results also boosted shares in Sweden’s Hexpol and Skanska, but Spain’s Banco Popular fell 6.8 percent after posting a full-year record 3.5 billion euros loss. Finnish paper producer Stora Enso was bottom of the STOXX after its Q4 results missed analysts’ estimates.
In Currency Markets the dollar fell on Friday in choppy trading after the U.S. employment report showed a smaller-than-expected rise in wages last month despite strong jobs gains, likely prompting the Federal Reserve to be less aggressive in raising interest rates this year. Against the yen, the dollar was down 0.3 percent at 112.46 yen. The euro, meanwhile, was up 0.2 percent against the dollar at $1.0784. Sterling fell 0.16 percent to trade at $1.2504. The Australian and New Zealand dollars pushed higher, with Aussie up 0.48 percent at $0.7694 and with Kiwi climbing 0.54 percent to $0.7326. In midday trading, the dollar index fell 0.1 percent to 99.666.
In Commodities Markets oil prices jumped on Friday after the United States on Friday imposed sanctions on some Iranian individuals and entities, days after the White House put Tehran “on notice” over a ballistic missile test. Front month U.S. West Texas Intermediate crude futures climbed 24 cents to $53.78, after closing 34 cents down on Thursday. Brent crude futures were up 30 cents at $56.86 a barrel. Spot gold was at $1,215.80 an ounce, little changed from late on Thursday but off an earlier low of $1,207.10. Silver was down 0.7 percent at $17.41 aving reached its highest in more than 11 weeks at $17.73 in the previous session. Platinum was down 1.1 percent at $993.60, while palladium was 1.8 percent lower at $743.58.
In US Equity Markets stocks climbed higher on Friday, lifted by a much better-than-expected nonfarm payrolls data and as financial stocks gained on expectations of simpler bank regulations. The S&P 500 was up 0.35 percent, at 2,288.95 and the Nasdaq Composite was up 0.25 percent, at 5,650.06. Visa rose 4.2 percent following quarterly profit and revenue that beat analysts’ expectations. Amazon.com fell 4 percent after the world’s largest online retailer forecast a surprise fall in operating profit for the current quarter. Apparel and footwear maker Deckers Outdoor lost 21 percent after missing quarterly revenue estimates. Citigroup, Bank of America, Goldman Sachs and JPMorgan were up between 1.6 percent and 2.3 percent.
In Bond Markets U.S. Treasury yields fell on Friday after a jobs report for January showed disappointing wage growth, indicating inflation is not rising at a pace that would lead the Federal Reserve to raise rates in the near-term. Benchmark 10-year notes gained 6/32 in price to yield 2.45 percent, down from a high of 2.49 percent before the report was released. Germany’s benchmark 10-year Bund yield reversed earlier rises to fall after the data.
European Equity Earnings
Metso (METSO FH) – Q4 EBITDA Adj. EUR 64mln vs. Exp. EUR 83.9mln, Net sales EUR 676mln vs. Exp. EUR 704mln and Co. states trading conditions were better than expected in FY16.
TDC (TDC DC) – Q4 EBIT DKK 695mln vs. Exp. DKK 947mln, Q4 Rev DKK 5.42bln vs. Exp. DKK 5.43bln and Co. sees stable to moderate growth in FY17.
European Equity Upgrades/Downgrades
BRITISH LAND (BLND LN) UPGRADED TO HOLD FROM SELL AT LIBERUM
ITV (ITV LN) UPGRADED TO BUY FROM HOLD AT INVESTEC
RECKITT BENCKISER (RB/ LN) UPGRADED TO OUTPERFORM FROM NEUTRAL AT EXANE
SHAFTESBURY (SHB LN) UPGRADED TO BUY FROM HOLD AT LIBERUM
SWATCH (UHR VX) UPGRADED TO NEUTRAL FROM SELL AT ODDO SECURITIES
TELECOM ITALIA (TIT IM) UPGRADED TO BUY FROM ADD AT BANCA IMI