(Businesshala) – European stocks were largely muted on Friday, but were on course to mark their sixth straight weekly gain, with luxury stocks soaring higher on the back of strong earnings from Cartier-owner Richmont.
The pan-European STOXX 600 index was flat after hitting a new record high earlier in the trading session.
Richmont rose 8.6% after beating profit estimates in the first half of the fiscal year and said it was seeking investors for its loss-making Yokes business, in a widely expected move to please shareholders. Used to be.
The luxury sector also got a boost from France’s LVMH, which gained 0.9% on news that Louis Vuitton was planning to open its first duty-free store in China.
French blue-chip shares were at an all-time high, with carmaker Renault jumping 3.7% after Morgan Stanley upgraded its stock.
Seema Shah, Chief Strategist, Principal Global Investors, said, “Earnings season confirms for the markets that the underlying growth and demand picture is still very strong, even as companies talk about supply issues and margin pressures. “
“But you’re probably going to get to a point where the returns go down and you see more volatility — investors have to make that adjustment in their minds.”
The STOXX 600 has seen fresh record highs in November, fueled by central bank messages, upbeat earnings reports and signs of a post-pandemic economic revival.
However, ECB policymakers acknowledged on Friday that euro area inflation could decline more slowly than previously thought, partly due to supply chain constraints that were more persistent than previously expected.
In addition, Europe has become the epicenter of COVID-19 again, Germany, France and the Netherlands are experiencing a surge in infections, and some governments are considering reimposing lockdowns, according to the latest data. motivating to do.
Oil and mining stocks led losses in the STOXX 600, with crude oil and metal prices falling 0.8% each, fueled by a stronger US dollar as market bets of a higher-than-expected Federal Reserve rate hike .
Italian infrastructure firm Atlantia rose 0.5% after raising its 2021 forecast, while Dutch oil and chemical storage group Vopak also advanced 1.2% after beating quarterly profit estimates.