Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

European stocks climb on energy boost; headed for weekly losses

Published 2024-11-01, 05:36 a/m
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 31, 2024.    REUTERS/Staff/File Photo
EUR/USD
-
MSFT
-
LHAG
-
SOGN
-
AAPL
-
CPRI
-
META
-
STOXX
-

By Pranav Kashyap

(Reuters) -European shares climbed on Friday, buoyed by a rally in energy stocks, but remained on track for their worst week in nearly two months as a tightly contested U.S. presidential election kept investors on edge.

The pan-European STOXX 600 index rose 0.5% to 508.05, after falling more than 1% in the previous session.

The benchmark was poised to record a drop of about 2% this week, marking its second consecutive weekly decline.

As the Nov. 5 U.S. presidential election approaches, the race remains too close to predict, with opinion polls showing a virtual dead heat.

Investors are placing their bets on the possibility of Republican candidate Donald Trump returning to presidency, although he is neck-and-neck with Vice President Kamala Harris in several polls.

This heightened uncertainty has driven investors to safe-haven assets, driving up the U.S. dollar and gold, which hit a record high this week.

In the current session, the energy sector was the biggest boost to the index, gaining 1.4% as oil prices surged on reports that Iran was preparing a retaliatory strike on Israel from Iraq in the coming days. [O/R]

Reckitt surged 10% after the consumer goods group was cleared of liability in the latest preterm formula case.

The travel sector fell 0.5% due to a 2.6% drop in Lufthansa (ETR:LHAG) shares after HSBC downgraded the stock to "hold" from "buy".

For the week, the banking sector gained the most, driven by upbeat results from French bank Societe Generale (EPA:SOGN). The food & beverages sector declined the most, dented by dour results from spirits maker Campari (LON:0ROY).

Meanwhile, earnings reports from Wall Street giants such as Meta (NASDAQ:META) and Microsoft (NASDAQ:MSFT) indicate that Big Tech is increasing its investments in AI. However, the absence of rapid and substantial returns has raised concerns among investors.

Apple (NASDAQ:AAPL) reported its earnings overnight, missing its fourth-quarter estimates for sales in China. [.N]

On the macro front, data showed that the Swiss consumer price index rose 0.6% in October. Its benchmark index was up 0.7%.

© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 31, 2024.    REUTERS/Staff/File Photo

With a relatively light data day in Europe, investors will turn their focus to the U.S. non-farm payrolls data due later in the day.

"A 25 basis point cut from the Federal Reserve (Fed) next week should be nailed on, and today’s labour market data is unlikely to change this," said Max McKechnie, Global Market Strategist at J.P. Morgan Asset Management.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.