On Friday, leading stock indices in Western Europe rose more than 1%. The uptrend in the European stocks was fueled by traders' risk appetite. The markets were further buoyed by encouraging updates from the US, with imminent progress reported on the resolution of the national debt issue. Securities in the mining and energy sectors stand out as Friday's top performers.
At the time of writing, the STOXX Europe 600, an index representing leading European companies, saw an uptick of 0.79%, reaching 458.88 points.
The French CAC 40 index climbed by 1.21%, the German DAX index added 1.04%, and the British FTSE 100 index leaped up by 0.89%.
Market leaders and laggards
Shares of Dechra Pharmaceuticals, a British veterinary medicine manufacturer, soared by 8.1%. The company recently agreed to be acquired by Swedish investment firm EQT for $6.11 billion.
The share price of British mining giant Anglo American climbed by 3.9%.
Chilean firm Antofagasta saw its market capitalization rise by 3.6%.
Shares of the world's largest mining company, BHP Group, jumped by 2.7%.
Amid an active increase in global oil prices on Friday, the shares of oil and gas companies Shell, BP Plc, and TotalEnergies appreciated by 0.8%, 1.6%, and 1.8% respectively.
The share price of the British aviation holding company International Consolidated Airlines Group S.A. edged up by 0.5%.
The market capitalization of German energy company Uniper plummeted by 15.5%.
Market sentiment
On Friday, European investors showed risk appetite in light of fresh news from the United States regarding the government debt limit. The US Senate passed a budget bill yesterday to raise the debt ceiling, a move previously approved by a majority vote in the House of Representatives. Once the bill receives the nod from both Houses, it will be presented to US President Joe Biden for signing. Experts assert that such news from the US significantly reduces the likelihood of a default and alleviates the state of uncertainty in global markets, positively influencing traders' risk-taking tendencies.
In addition, on Friday, European investors were assessing fresh statistical data from the region's countries. For instance, this morning, it was revealed that France's industrial production volume grew by 0.8% on a monthly basis in April, following a 1.1% drop in March. It outperformed analysts' predictions of a mere 0.3% increase.
Adding further support to Europe's leading exchanges on Friday is the optimism from the US stock markets the day before. The Dow Jones Industrial Average index rose by 0.47% at the end of Thursday, the S&P 500 index increased by 0.99%, and the NASDAQ Composite index jumped by 1.28%.
Analysis of yesterday's trading results
On Thursday, the leading stock indices of Western Europe closed in the green zone. Fresh data from the eurozone proved to be a key support factor for the European stock market.
Thus, at the end of yesterday, the pan-European STOXX 600 indicator gained 0.7%. Notably, it had ended the previous session at a two-month low. The French CAC 40 grew by 0.55%, the German DAX increased by 1.21%, and the British FTSE 100 jumped by 0.59%.
The value of the Italian pharmaceutical company Recordati's securities soared by 4.8%.
Quotes for Italian banks Banca Monte Paschi Siena, Unicredit, and Bper Banca grew by 2.5%, 2.8%, and 1.9%, respectively.
Market capitalization of British shoemaker Dr. Martens Plc plummeted by 11.7%. At the end of the 2023 fiscal year, the company decreased its pre-tax profits by 25.6%.
Shares of the British engineering company IMI Plc rose by 0.8%.
The value of securities of the German telecommunications chip manufacturer Infineon Technologies AG jumped by 2.4%.
The British investment company British Land's quotes grew by 0.2%.
Market capitalization of the German banking group Commerzbank gained 2.9%.
Despite exceeding market forecasts for operating profit growth in the 2022-2023 fiscal year, shares of the French alcohol manufacturer Remy Cointreau fell by 5%.
Securities value of the German construction materials manufacturing company Heidelberg Materials jumped by 2%.
Quotes for the German energy company Uniper soared by 28.3%.
Market capitalization of the British utility operator Pennon Group gained 1.2%.
On Thursday, European investors analyzed macro statistics for the euro region. According to a preliminary assessment by experts from the European Union Statistical Office, annual inflation in the eurozone slowed down to 6.1% in May from 7% in April. Analysts had expected a rate of 6.3%.
Unemployment in the eurozone was registered at 6.5% at the end of April, compared to the revised level of 6.6% in March. According to the final estimates, the industrial business activity index in the eurozone fell to its lowest level in three years, 44.8 points, in May. Analysts had forecast the indicator to come out at 44.6 points. The previous month, the indicator was at 45.8 points.
