FX.co ★ European Stocks Close Higher As Investors React To Earnings, Economic Data

On Friday, European stocks closed higher, influenced by updates in corporate earnings, regional economic data, and U.S. job data for April. The upbeat results from Apple Inc., combined with relieved worries over the forecast for interest rates, helped bolster market positivity.

Expectations for the U.S. Federal Reserve to begin easing its policy were fueled by data showing a rise in U.S. unemployment rates. According to European Central Bank policymaker, Yannis Stournaras, it is likely that there will be three rate cuts in 2024, based on analysis of recent growth and inflation data.

The pan-European Stoxx 600 increased by 0.46% with the U.K.'s FTSE 100, Germany's DAX, France's CAC 40 and Switzerland's SMI also recording gain. Markets in Belgium, Finland, Greece, Netherlands, Norway, Sweden, and Turkey also closed higher, while Denmark, Iceland, Poland, Portugal, and Spain finished weaker and Austria and Russia had no change.

In the UK, Phoenix Group Holdings reported a 6.5% increase. While other companies like Berkeley Group Holdings, Persimmon, Taylor Wimpey, Barratt Developments, Prudential, Convatec Group, and RightMove also reported significant growth.

In Germany, Henkel's shares soared by approximately 7.2% after it increased its sales and earnings outlook for 2024. Other companies such as Puma, Rheinmetall, Vonovia, MTU Aero Engines, and Siemens Energy also saw increases. Daimler Truck Holding reported a decline in Q1 global sales resulting in a 3.7% drop in their shares.

Strong performance was seen in Paris with Edenred, Saint-Gobain, STMicroElectronics, Kering, LVMH, Hermes International and other major companies. Societe Generale's shares fell by over 5% following the report of a smaller-than-expected slide in first-quarter net income.

The French industrial production saw a decline in March, dropping by 0.3%. Manufacturing output also fell 0.5% in March compared to a rise of 1% in February.

Eurozone's jobless rate maintained a record low for the fifth consecutive month in March, whereas, the unemployment decreased. The jobless rate for the EU also fell in March.

The UK service sector reported their quickest pace of growth in nearly a year due to a strengthening of their order books in April. Private sector business activities also saw an overall increase.

Thus, the progress and mix of positive and negative changes the European economy experienced during the time most likely influenced the upward trend in the stock market.