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European Markets at Close Report

Jul 1, 2016

European Markets at Close Report, by CNBC on JuLy 1, 2016: European Closes Higher Amid Post-Brexit Recovery, FTSE Sees Best Week Since Week Since 2011

European stocks finished the session with solid gains Friday as the recovery in global markets continued despite uncertainties over the Brexit vote.

Carney: BoE could deploy further stimulus

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The pan-European STOXX 600 closed up 0.6 percent provisionally in what had been a choppy session. Sectors were mostly higher, while tech and health care stocks showed signs of weakness.
London's FTSE index closed higher by 1 percent provisionally. On the week, it saw gains of over 7 percent marking the best weekly percentage gain since December 2011.
Market have been on a high since Bank of England Governor Mark Carney gave a dovish speech Thursday, saying that the bank could deploy further stimulus this summer in light of last week's U.K. referendum result.

Autos outperform; banks waver

Sterling was trading slightly up against the dollar at $1.333 during trade; recovering from the losses it saw late Thursday. On top of that, Britain's 10-year government bond yield fell to a record low of 0.831 percent during morning trade.
In other markets, Asia closed mostly higher on Friday, despite a slew of downbeat data from China and Japan. Manufacturing momentum in China skidded to a four-month low in June, according to twin surveys released on Friday. In the U.S., stocks tried for gains, amid key domestic manufacturing reports.
In oil markets, prices were choppy during trade, with Brent hovering around $49.70 per barrel, as investors returned their focus to oversupply, following a production recovery in Canada and Nigeria. U.S. WTI traded around $48.40.
Elsewhere in commodities, Fresnillo jumped almost 7 percent, on the back of a sharp rise in silver, which hit close to 2 year highs on Friday. Most metal prices posted solid gains, boosting the likes of ArcelorMittaland Anglo American. However BHP Billiton was in the red, after a court in Brazil, reinstated a $6 billion claim over the Samarco iron ore disaster; Reuters reported.
Italian banks got a boost in early trade before paring, after the European Commission authorized a plan by the country's government to make sure there's liquidity for lenders, in the event of a financial crisis. BMPS held onto gains, up over 1 percent, while Intesa Sanpaolo, and UniCredit reversed gains to trade lower, following turbulence in the sector.
In an effort to expand its footprint in the U.S., snack giant Mondelez International made a $23 billion bid for Hershey. However, the U.S. chocolate conglomerate rejected the offer. Shares in food firms Nestleand Barry Callebaut were both posting strong gains.
Meanwhile, shares in Kering popped over 2 percent, after JP Morgan raised its rating on the stock from "neutral" to "overweight". HoweverTelefonica Deutschland slipped over 2 percent, after Credit Suisse downgraded its rating to "neutral" and cut its price target on the stock.Hugo Boss was also off 2.4 percent, after JP Morgan cut its target price.
Embattled carmaker Volkswagen was up over 5 percent, after a lawyer for the auto firm said at a court hearing that it could fix 85,000 polluting 3.0 liter diesel cars and SUVs by the brand along with Audi and Porsche; according to Reuters.
Autos was the best performing sector, up over 3 percent. New car sales rose 0.8 percent in France during the month of June, according to the CCFA automobile association. French automakers, Renault and Peugeot Citroen jumped over 5 percent each.
Euro zone unemployment data for May came out on Friday, with the figure falling to 10.1 percent, down from April's 10.2 percent figure, according to Eurostat.