European stocks were boosted on Friday on strong US employment data as markets shook off losses tied to comments from Federal Reserve Chairman Jerome Powell who said the central bank was unwilling to contain rising long-term bond yields.
The Stoxx Europe 600
Losses fell to 412.15, up 1.8% from the week. The German DAX
slipped 0.2% and the French CAC 40
was down 0.1% during the FTSE 100
United Kingdom: UKX
rose 0.5% supported by a strong pound
like the dollar
strengthened. The Euro
opened higher following The technology-oriented router from ThursdaySince February job data was stronger than expected, it rose 379.00. The bonds remained under pressure. The yield on the 10 year Treasury bill
shot up to 1.60% according to the employment data.
The rate of return for the German 10 years
Bund recently rose 2 basis points to -0.286%, a level that has not been seen since roughly last June.
Previous losses in Europe and on Thursday in the US were recorded according to Powell said a disorderly move in the bond market would be worryingHowever, the comments at the Wall Street Journal Jobs Summit failed to indicate that the central bank was alarmed.
Investors are concerned that bond yields will continue to rise amid his apparent lack of concern and pressure on stocks. “The markets wanted clues as to what the central bank would do if things got worse, and if that didn’t happen, stocks were hit,” Spreadex financial analyst Connor Campbell said in a statement to clients. “
In Europe, German construction orders rose better than expected 1.4% in January after falling 2.2% in December.
In the case of European stocks in motion, commodity-related stocks rose in the case of Royal Dutch Shell
and the one for BP
increased more than 2%. Those profits came as raw futures
climbed over 2%.
US prices recorded their highest place since 2019 on Thursday after the Organization of Petroleum Exporting Countries and its allies announced that they would extend current production cuts to the end of April.
The airlines fell with shares in Deutsche Lufthansa
International consolidated airlines
Great Britain: IAG,
which operates British Airways and other airlines as well as Ryanair
each by more than 3%.
The pharmaceutical sector was weak with a heavily weighted Roche Holding
a stellar decline, falling more than 2%, and shares of Novo Nordisk
Shares fell 3% after the French aircraft maker said Profit and sales decreased in 2020 as the aviation industry continues to grapple under the weight of the COVID-19 pandemic. Dassault expects higher sales in 2021. Shares in rival Airbus
fell about the same.
Stocks of the London Stock Exchange
Great Britain: LSEG
fell 12%. The exchange operator said pre-tax profit increased 5.2% in 2020 due to higher revenues and stated an increased dividend.
Citi analyst Andrew Coombs downgraded stocks to neutral, citing disappointing cost outlooks and concerns. “We may have to wait until 2026 to reach the 50% Ebitda we want [earnings before interest taxation depreciation and amortization] this margin target (ex restores). “