CORRECTED-UPDATE 2-U.S. data lifts European shares, but they log worst week in two months (Oct. 4)
(Corrects milestone in headline and third paragraph to show European shares logged their worst week in two months, not one year. Also corrects to show the STOXX 600 fell about 3% in the week, not 4%, in the third paragraph.)
* STOXX 600 posts best day in over 3 weeks
* Defensive sectors seen favoured
* Data shows modest U.S. jobs growth
* Chipmakers rise on upbeat Apple report
By Susan Mathew and Agamoni Ghosh
Oct 4 (Reuters) - European shares ended a tumultuous week on a high note on Friday as data showing modest U.S. jobs growth lifted sentiment slightly, pushing a pan-region index to its best day in more than three weeks.
The rally was led by sectors considered stable during times of economic uncertainty such as healthcare .SXDP and food and beverages .SX3P showing that worries still remain about the health of the global economy.
A raft of weak economic data from the United States and Europe, and threats of a transatlantic trade war between the European Union and the U.S, had knocked European shares this week, shaving nearly 3% off the pan-European STOXX 600 index .STOXX in its worst week in two months.
On Friday, the index rose 0.7% as U.S. jobs data eased fears about a sharp slowdown in the world's largest economy but it was not strong enough for investors to dial back on expectations of an interest rate cut by the U.S. Federal Reserve next month.
"For as long as the Fed's move looks to be on an easing path I think equities are going to be gaining," said Andrea Cicione, head of strategy at TS Lombard.
But he warned that the regional market may be getting ahead of itself as data out of Europe has been weak.
Technology stocks .SX8P rose 1.3%, with chipmakers jumping after a report said Apple Inc AAPL.O would increase its iPhone 11 production. of chipmakers AMS AMS.S , Infineon Technologies IFXGn.DE , STMicro STM.MI and Dialog Semiconductor DLGS.DE jumped between 2% and 4.3%.
London-listed shares .FTSE rose after four sessions of losses, but clocked their biggest weekly fall in a year, hurt by fresh Brexit worries and recession fears. Euro zone shares .STOXXE posted weekly losses not seen since early August.
Automakers .SXAP were the worst performers, down 0.3%, with BMW BMWG.DE shedding 1.2% after an Australian regulator called for 20,000 cars with faulty Takata airbags to be kept off the roads, many of which include BMW cars. of London Stock Exchange Group plc LSE.L rose 3% after reports that some of the bourse operator's shareholders told Hong Kong Exchanges and Clearing 0388.HK to increase its takeover offer by 20%. stocks .SX7P fell 0.2%, extending falls to a fourth session.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or