Friday 25 May 2018 13.00
European markets rebound
On Friday stocks gained after North Korea offered a measured response to President Donald Trump’s decision to cancel a summit with that country’s leader. The dollar was steady along with U.S. Treasuries, while crude oil extended a decline.
The Stoxx Europe 600 Index advanced, with most sectors in the green, and equity-index futures pointed to a higher U.S. open as concerns about an escalation in tensions over North Korea’s nuclear program eased. WTI crude slumped below $70 a barrel after a Saudi minister said supply would likely be boosted in the second half. Italy’s bonds dropped as worries mounted over its leadership, sending the spread between German and Italian 10-year yields above 2 percentage points. Earlier, stocks in Asia saw modest declines.
European stocks rebounded after two straight sessions of losses after measured comments from North Korea calmed nerves about a geopolitical crisis. Better-than-expected sentiment data from German also helped boost markets on the last trading day of the week.
The Stoxx Europe 600 Index SXXP, climbed 0.5% paring its weekly loss to 0.6%. A decline this week would break the benchmark’s eight-week winning run, which marked its longest win streak since June 2014. The U.K.’s FTSE 100 index gained 0.2%, buoyed by a weaker pound. Sterling fell to $1.3343 from $1.3379 late Thursday in New York. U.K. markets are closed on Monday for a local holiday. Germany’s DAX 30 index rallied 1% to 12,982.85, while France’s CAC 40 added 0.6% to 5,581.70. Italy’s FTSE MIB index gained 0.3% to 22,810.99 and headed for a 2.7% loss for the week. The index has been on a roller coaster rise this week after the populist coalition of the 5 Star Movement and League on Monday presented their prime minister candidate to President Sergio Mattarella.
After tumbling on Thursday in the wake of Trump’s decision to cancel a historic meeting with North Korea, the market’s appeared to shake off the angst over tensions in the Korean Peninsula.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management, TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: email@example.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.