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Europe close: Stocks close higher for fourth week in a row
(WebFG News) - Stocks finished little changed on Friday even as investors kept a close eye on government bond markets following the spate of sharp selling seen during the previous session, which market commentary linked to expectations for faster rate hikes in the States, especially following recent sharp gains in commodity prices.
"Despite background noise that continues to reverberate with concerns about trade, markets in Europe look set to close higher for the fourth week in succession, despite a mixed session yesterday, helped at the start of the week by relief that last weekend's cruise missile strikes didn't prompt an escalation in tensions between Russia and the US," said Michael Hewson, chief market analyst at CMC Markets UK.
"[...] This week's rise in commodity prices has seen the Reuters CRB index push to its highest levels since the middle of 2015. We've also seen a rise in bond yields as investors wake up to the prospect that these gains might well see inflationary pressures start to reassert themselves further down the line," he said.
Against that backdrop, as of the closing bell the benchmark Stoxx 600 was edging lower by 0.03% or 0.11 points to 381.84, alongside a move higher on the FTSE Mibtel of 0.16% or 37.30 points to 23,829.34, while the Dax was down by 0.21% or 26.92 points at 12,540.50.
In parallel, the yield on the benchmark 10-year German bund was dipping by one basis point at 0.59%, but after a seven basis point jump on Thursday.
For the week as whole, the Stoxx 600 clocked in with an advance of 0.7%, for its fourth consecutive monthly gain.
News was light on the economic front, albeit positive, with the European Commission reporting that its consumer confidence index for the Eurozone improved by 0.3 points in April to reach 0.4 (consensus: -0.1).
On the corporate side of things, Vinci was higher after the French construction group announced a new contract for two roads in Cameroon for a total of 214m.
Lufthansa shares on the other hand were lower despite ratings agency Standard&Poor's having revised its outlook on the carrier's long-term debt lower, from 'positive' to 'stable'.