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UPDATE 2-European stocks clock best weekly showing in 2 months, French shares shine

Published 2019/06/07, 18:18
© Reuters.  UPDATE 2-European stocks clock best weekly showing in 2 months, French shares shine
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* European shares record best weekly performance in two months

* Sanofi shares rise after it poaches Novartis Pharmaceuticals CEO

* Tech stocks rise on hopes of U.S.-China trade thaw (Recasts, updates to close, adds quote)

By Aaron Saldanha

June 7 (Reuters) - European stocks posted their best weekly performance since early April on Friday, aided by strong gains in Paris, against a backdrop of hope among investors that central banks would support global growth with more accommodative policies.

The Bundesbank slashed its growth projections for Germany and euro zone money markets now price in a 60% chance of the European Central Bank cutting interest rates by 10 basis points by year-end, while U.S. job growth slowed sharply in May, feeding expectations of lower U.S. interest rates in 2019. US/ pan-European STOXX 600 .STOXX gained 0.9%, with Paris-traded stocks .FCHI posting a 1.6% gain. Frankfurt-listed shares .GDAXI rose 0.8%, while their peers in London .FTSE firmed 1%. .L

"Investors continue to pile into equities, with the jobs report and subsequent stock rally capping a very good week for equity markets," Chris Beauchamp, chief market analyst at IG, wrote in a note.

Sanofi SASY.PA tacked on 4.4% to prop up the French index and European health care .SXDP stocks, on news it has poached Paul Hudson from Novartis NOVN.S to become its new chief executive later this year. STOXX 600's top performer was Dutch insurer ASR Nederland ASRNL.AS with a 5.8% rise, after rival Vivat, for which ASR previously made an offer, agreed to be bought by private European life insurer Athora. shares .SX8P , broadly sensitive to trade war ructions, starred with a 2% gain. Chinese President Xi Jinping on Friday called U.S. President Donald Trump his friend and said he believed the United States was not interested in rupturing economic ties with China. chemicals sector .SX4P was among Europe's top performers, rising 1.1%. Belgian chemical and materials maker Solvay SOLB.BR gained 2.3%, aided by UBS upgrading its rating on the stock and boosting its target price. higher Brent crude futures LCOc1 fuelled energy shares' .SXEP 1.2% rise, Polskie Gornictwo Naftowe i Gazownictwo SA PGN.WA led the sector with a 3.5% gain. A unit of the Polish firm bought a stake in the Norwegian King Lear deposit from Total E&P Norge. O/R

Financial services .SXFP rose 0.8%, with the sector's gains led by Exor EXOR.MI , which added 1.6%. The Milan-listed firm is the top shareholder in Fiat Chrysler Automobiles FCHA.MI , which pulled away from an offer to merge with Renault RENA.PA earlier this week. and their suppliers .SX7P gained 0.1%, as a 4.9% fall in German car parts maker Hella HLE.DE following a rating downgrade by brokerage BHF weighed. estate stocks .SX86P dipped 0.6%, making them the STOXX 600's only losing sub-sector.

Deutsche Wohnen DWNG.DE slid 8.5% after Morgan Stanley (NYSE:MS) downgraded its rating on the German property group to "equal weight" from "overweight". bank cited the risk of rising political involvement in the German residential market. The Berlin Senate proposed earlier this week to impose a five-year rent freeze from January 2020.

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