Europe close: Stocks end on mixed note
European stocks edged higher as investors were seemingly optimistic about US President Donald Trump’s stimulus policies and his upcoming meeting with British Prime Minister Theresa May.
The benchmark Stoxx Europe 600 rose 0.25%, Germany’s DAX was up 0.36% and France’s CAC 40 was 0.21% lower.
Oil prices rallied from losses in overnight session as traders shrugged off another rise in US oil inventories. West Texas Intermediate rose 2.2% to $53.93 per barrel and Brent crude gained 2.4% to $56.40.
Market analyst at IG Joshua Mahony said: “Markets are turning to riskier assets as we approach the back end of the week, as the glee of yesterday’s 20,000 milestone for the Dow providing the basis for bullish moves across the financial markets. Despite the divisive nature of Trumps policies, markets have come to the realisation that money talks, and with many of his other policies coming to fruition, it seems a fiscal spending package is just around the corner.”
“Tomorrow sees Theresa May meet Trump, representing the first world leader to see the new President since his inauguration. After a period of negativity where a host of EU members talked down the economic future of the UK, it now sees we are seeing a more positive period, with the olive branch being extended by senior figures in nations such as Canada, US and Australia.”
May is meeting with Trump on Friday to discuss a possible trade deal between their two nations.
In corporate news, Fiat Chrysler sped ahead as it nearly doubled its fourth quarter profit after cost cuts. The car maker's net profit rose to €409m for the three months ended 31 December from €196m in 2015.
Astrazeneca was in the green as it won six months of paediatric exclusivity for the Symbicort inhalation aerosol from the US Food and Drug administration. Symbicort is currently approved in the US to treat asthma in patients from the age of 12 and above and for the maintenance treatment of chronic obstructive pulmonary disease in adults.
Swedish bank Nordea was on the front foot as it raised its dividend and reported a 30% spike in fourth-quarter net profit as lower costs helped compensate for low net interest income.
Swiss biotech group Actelion rocketed after agreeing to be bought by Johnson & Johnson for $30bn.
STMicroelectronics rallied on the back of well-received fourth-quarter earnings.
Royal Bank of Scotland edged higher as it confirmed it will book a further £3.1bn in provisions to pay off a looming penalty in the US for its sale of residential mortgage-backed securities in the run up to the financial crisis. RBS said on Thursday that it has set aside a total of £6.7bn, which would reduce its tangible net asset value per share at 30 September 2016 by 27p to 311p.
Anglo American ticked up after it said production was higher in the fourth quarter, although copper output declined, while Diageo was in the black as it reported a 28% jump in first-half operating profit.
On the downside, Unilever was in the red after it posted lower-than-expected sales for the fourth-quarter.