By Sara Sjolin, MarketWatch
LONDON (MarketWatch)--Most European stock markets finished the
week on a high note on Friday, with the benchmark Stoxx Europe 60
index ending at the highest level in two weeks, after Scotland
voted to stay within the United Kingdom.
The upbeat trading mood came as the final result of the Scottish
referendum showed 55% of the voters rejected the independence
questions, a much more convincing win that polls had indicated
leading up to the vote. Read: Scotland's 'No' vote: What
strategists are saying
Market reaction: The pan-European Stoxx Europe 600 index climbed
0.2% to close at 348.52, marking the highest close since Sept. 4.
On the week, the benchmark rallied 1.2%
The U.K.'s FTSE 100 index climbed 0.3% to 6,837.92, in relief
that the U.K. will stay together. Scotland-exposed banks, such as
Royal Bank of Scotland Group PLC (RBS), rising 2.5%, and Lloyds
Banking Group PLC (LYG), up 1.3%, helped lift the index.
The pound (GBPUSD) jumped to as high as $1.6526 overnight when
initial polling results pointed to a majority of Scottish voters
rejecting independence. However, the rally fizzled on Friday
morning, which some analysts explained by short-term investors
taking some profits. Sterling traded at $1.6311 at the time of the
European close, down from around $1.6400 when the polls closed on
Thursday.
French downgrade rumors: France's CAC 40 index underperformed
the other major bourses and ended 0.1% lower at 4,461.22 amid
rumors that Moody's Investors Service might downgrade the country's
credit rating later on Friday.
The rumor started when French newspaper L'Opinion Thursday
reported that Moody's had given the French government notice about
a possible downgrade of its credit rating to AA2 from AA1. However,
the French government said it had not been notified and Finance
Minister Michel Sapin said on Friday he wants the country's market
regulator to open an investigation into the newspaper report.
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