European stocks fell on Friday but managed to show a weekly gain, as corporate earnings
European stocks end the week lower amid U.S.-China trade spat volatility
European stocks fell on Friday but managed to show a weekly gain, as corporate earnings, monetary policy and key U.S. jobs data remained in focus.
The pan-European Stoxx 600
index was higher by 0.54% over the week, which started with a rise in volatility in part due to the U.S.-China trade spat.
On Friday, data showed that U.S. nonfarm payrolls rose by 143,000 in January, down from 307,000 in December and below the 169,000 forecast by Dow Jones. While the figures were weaker than expected, the U.S. unemployment rate dipped to 4% from 4.1%.
Richard Carter, head of fixed interest research at Quilter Cheviot, said the Federal Reserve — which has paused rate cuts amid concerns over inflation — would be reassured that “for now, the labor market is still chugging along.”
Stocks in Europe also closed at a record high on Thursday, erasing losses earlier this week when the beginnings of a possible U.S.-China trade war sent jitters through global markets.
The fresh highs came after a flurry of company earnings report and an interest rate cut from the Bank of England. The central bank on Thursday cut its key rate by 25 basis points and signaled more cuts were on the horizon in 2025. However, it also halved its growth projection for Britain, slashing its 2025 growth forecast from 1.5% to 0.75%.
