Europe: Stoxx 600 rounds off fifth week of gains, Cartier-parent Richemont advances
[BENGALURU] European shares rounded off their fifth week of gains on Friday (May 16), as trade deals out of the US eased tariff worries and strong corporate results provided further boost.
The region-wide Stoxx 600 index closed up 0.4 per cent. Most local bourses were also higher, with Germany's hovering near a record high.
Luxury group Richemont rose almost 7 per cent after reporting a slightly stronger-than-expected 7 per cent rise in quarterly sales. It lifted the personal and household goods sector 1.2 per cent, while the luxury index rose 2.2 per cent.
Earnings in the region have shown resilience, with first-quarter earnings now expected to increase more than previously thought, LSEG data showed earlier in the week.
Heavyweight healthcare shares were the biggest boosts, jumping 1.2 per cent, boosted by AstraZeneca and Novartis.
Declines in basic resource miners and technology stocks limited gains on the benchmark index.
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For the week, the European benchmark index rose about 2 per cent, driven by a deal between Washington and Beijing to lower tariffs on each other.
A week ago, Trump and British Prime Minister Keir Starmer agreed on a limited bilateral trade agreement, making way for conversations that a deal with the European Union is also around the corner.
'The agreement with both China and the UK raises the question of whether the EU will reach a similar deal with the US before the pause on the so-called 'reciprocal' tariffs expires... we suspect a US-EU deal is not imminent,' said Andrew Kenningham, chief Europe economist at Capital Economics.
'The US is probably less motivated to reach an agreement with the EU than it was with the UK or China.'
The region was closely monitoring developments from the Russia-Ukraine peace talks, after the first direct talks in more than three years between the two warring countries yielded no ceasefire.
On the data front, French unemployment rate came at 7.1 per cent for the first quarter.
Italian EU-harmonised consumer prices rose 2 per cent year on year in April, revising down preliminary data. The preliminary estimate had pointed to a 2.1 per cent year-on-year rise.
European Central Bank policymaker Martins Kazaks said interest rates may be at their lowest point, but higher uncertainty and sudden changes could alter the policy outlook.
Among other stocks, Novo Nordisk fell 1.8 per cent. The drugmaker ousted chief executive Lars Fruergaard Jorgensen on concerns the company is losing its first-mover advantage in the obesity drug market. REUTERS
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