European stocks closed higher in holiday-thinned trading Friday, helped by energy stocks such as BP PLC and drug shares like Roche Holding AG.
Markets in London closed early and European markets are closed next Monday for the Christmas holiday. The Stoxx Europe 600 index rose 0.87% to 241.83, after closing up 1% in the prior session. The index ended the week up more than 3%, but on a year-to-date basis, it has lost over 12%.
U.S. stock markets traded higher after a mixed bag of data, including lackluster consumer spending and personal incomes, stronger-than-expected durable-goods orders and a sharp gain for new home sales in November. Still, some pointed to the lack of rising incomes in the U.S. as a factor that could harm any budding recovery. Light trading helped draw attention away from sovereign-debt issues on Friday – bond yields are creeping higher.
Stock markets were largely lifted this week after a strong take-up of three-year loans by the European Central Bank, with some of that money expected to be directed toward buying of sovereign debt. Italian 10-year government bond yields traded higher to around the 7% level from 6.79% late the prior day.
The FTSE Italy MIB index rose just 0.31% to 15,073.99, with banks UniCredit SpA and Unione di Banche Italiane SCpA down 3% and 2%, respectively. Banks across Europe made strong gains the prior session. Italy’s Senate gave final approval to a $40 billion emergency austerity and growth package on Thursday following a lengthy debate, according to media reports. Prime Minister Mario Monti had called for a confidence vote on the measures.
Oil stocks lead gains Crude oil continued to edge nearer the $100-a-barrel mark, lifting energy stocks like BP, which closed up 2% in London and Total SA, up 2% in Paris. The French index gained over 4% for the week. Less stellar gains were seen in Frankfurt, where the German DAX 30 index rose 0.46% to 5,878.93.
EasyForexNews Research Team