European stocks trade higher for a 4th straight weekly gain

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January 25, 2019 1:59pm NYSE:VGK

NYSE:VGK | News, Ratings, and Charts

From Emily Horton: European stocks ended higher Friday, notching a fourth straight weekly gain despite fresh investor worries over the U.S.-China trade dispute.

Banks, miners and autos were among the biggest gainers, while telecommunications companies led the losers.

What are markets doing?

The Stoxx Europe 600 SXXP, +0.61%  ended 2.17 points higher at 357.84, a gain of 0.6%, after finishing up 0.2% on Thursday. For the week, the index rose 0.2%.

Germany’s DAX 30 DAX, +1.36%  was the biggest gainer among Europe’s major indexes, adding 1.4% to finish at 11,281.79. Italy’s FTSE MIB Italy indexI945, +1.26%  gained 1.3% to end at 19,810.52, France’s CAC 40 PX1, +1.11% rose 1.1% to 4,925.82, while the FTSE 100 UKX, -0.14%  edged 0.1% lower to 6,89.22.

The euro EURUSD, +0.9021% was up on Friday, fetching $1.1403 from $1.1307 late in New York on Thursday.

The British pound GBPUSD, +0.9185% jumped on reports in the Sun newspaper that the Northern Ireland’s Democratic Unionist Pary has decided to back a revised Brexit deal from Prime Minister Theresa May was up $1.3157 from $1.3065 late in New York on Thursday.

What’s driving the market?

Investor fears over the U.S.-China trade war were aggravated by U.S. Commerce Secretary Wilbur Ross, who told CNBC on Thursday that the countries are “miles and miles” away from reaching an agreement on trade. But hopes for a trade deal continue to help stocks move higher.

Earnings optimism from the U.S. was also a driver, as Wall Street stocks rose.

On Thursday, European Central Bank President Mario Draghi acknowledged that the outlook for the eurozone economy had deteriorated since December. Draghi indicated the ECB might have to keep its monetary policies loose enough to help the region’s economy out of the new slump.

Investors shook off news from Germany, that business sentiment deteriorated sharply in January — a sign that the economic troubles that started in the second half of 2018 are spreading into 2019.

And the new chief executive of Goldman Sachs Group Inc. GS, +1.65% ), David Solomon, has echoed the warnings of his predecessor that a messy Brexit will impact the bank’s investment decisions in the U.K.

What stock are active?

Ericsson AB ERICB, +3.18%  added 3.2% as the company’s fourth quarter losses were narrowed by the continued demand for 5G networks.

Renault SA RNO, +4.91%  gained nearly 5% after the car manufacturer appointed Deputy Chief Executive Thierry Bolloré to take over the company, The Wall Street Journal reported.

Switzerland’s Givaudan SA GIVN, -3.71%  fell 3.7% after the company announced its earnings had fallen in 2018 even though sales had risen.

Vodafone Group PLC VOD, -4.89%  lost nearly 5%, after reporting a drop in revenue. Meanwhile, Vodafone said Friday that it would halt buying Huawei gear for its new 5G networks rolling out across Europe because it’s unsure some governments in the region will ban the Chinese company.

The Vanguard FTSE Europe ETF (VGK) was trading at $51.46 per share on Friday afternoon, up $0.57 (+1.12%). Year-to-date, VGK has declined -12.58%, versus a 0.14% rise in the benchmark S&P 500 index during the same period.

VGK currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #32 of 91 ETFs in the European Equities ETFs category.

This article is brought to you courtesy of MarketWatch.

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