GERMANY (OBSERVATORY) – The European stock market stabilized on Friday at a strong weekend as the core resources sector slowed, though strong results gave Ericsson and Teleia a boost.
The Stoxx 600 European index closed little changed but ended the week on gains of 0.7 percent, its fourth weekly gain in a row, as global markets recovered from turmoil in the first quarter.
Concerns about possible trade wars, faster US interest rates and a regulatory campaign on major technology groups sent the Stokes index to a 14-month low in March.
But since April, the benchmark index has taken a path to recovery as these fears have eased and investors’ appetite for stock has opened up again.
While index-level moves were largely limited on Friday, Ericsson jumped 17.5 percent, its biggest single-day gain since October 2002, after Swedish mobile phone maker Mobile reported first-quarter profit higher than market expectations.
Its gains pushed its Finnish rival, Nokia, up 2.4 percent.
Teleia jumped 8.6 percent after the Scandinavian telecom group announced a share buyback plan that was welcomed as its first-quarter earnings exceeded market expectations by a narrow margin.
Metro was the top loser, plunging 10.8 percent after the German retailer cut its profit forecast due to poor performance in Russia.
After rising 2.6 percent this week, the oil stocks index fell on Friday as crude prices plummeted after US President Donald Trump criticized Opec over its oil production curbs and led to a rise in world crude prices, saying that “artificially high prices” “Will not be accepted.