European shares are in the green Friday, as a variety of sectors are higher following steep losses in recent days trading. Most European bourses made gains, with luxury and tech stocks making notable gains after recent sell-offs.
By 1320 BST, the EUROSTOXX 600 was up 0.73%, while the EUROSTOXX 50 had gained 0.56%. The German DAX rose 0.78% and the French CAC was 0.82% in the green, however, the Spanish IBEX was down 0.32%.
Investor sentiment recovers, a little
It’s been a tough week, in which investor sentiment took a hit from fears over global growth, the ongoing US-China trade dispute, Italian budget worries and Brexit-related fears.
“The [US] sell-off then spread to Europe, where investors are also concerned over the impact of the US-China trade war on European exporters,” said Schroders Senior European Economist, Azad Zangana. “The situation in Italy has not helped either this week as talks continue over its 2019 budget.”
Stocks also lost ground as US interest rates look set to continue on their upward path. Indeed, US President Trump has criticised the US Federal Reserve for raising interest rates too quickly.
“I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy,” Trump said as he landed in Pennsylvania earlier this week. “I really disagree with what the Fed is doing.”
However, investors appear to have recovered a little confidence as they buy up numerous stocks that have lost ground this week.
Among the stock gainers helping support index increases, are luxury goods stocks. LVMH, Kering and Dior have lost ground this week amid fears that demand from China’s consumers could suffer from a slowdown in growth and the trade disagreement with the US.
However, Friday sees LVMH shares up 0.80% at €264.05, Gucci owner Kering shares gain 3.33% to hit €384.70 and Christian Dior shares rise0.99% to €327.70.
However, there have also been some fallers Bayer shares were 0.45% lower, despite the likelihood of a retrial in the Monsanto RoundUp case.
Orange shares are also in the red amid positive news over its collaboration with Google on the Dunant, transatlantic, submarine cable installation.