UKX FTSE 100 Index

By Karen Friar, MarketWatch

Stoxx Europe 600 on the verge of snapping weekly win streak

European stocks showed signs of recovery Friday, as the tech group tracked their U.S. counterparts higher, after Apple Inc.'s record surge on Thursday, which has helped to buoy overall market sentiment.

However, a disappointing update on retail sales in the eurozone was seen putting in doubt inflation hitting the European Central Bank's inflation target, as traders turned their focus to the U.S. monthly jobs report for a factor that could further catalyze the market.

How markets are moving

The Stoxx Europe 600 indexwas up 0.6% at 388.79, on the heels of two significant losses in a row. On Thursday, the pan-European index dropped 0.8%, as stocks were dragged lower by signs of heightened trade tension between the U.S. and China.

For the week, the benchmark is on track for a 0.9% drop, which would snap a series of four straight weekly wins for the benchmark, according to FactSet.

Germany's DAX 30 indexmoved 0.5% higher to 12,604.81, after sliding 1.5% on Thursday on trade fears and disappointing financial updates. The German index also is on track to log a weekly decline of about 2%, marking its first such decline since the week ended June 29.

The U.K.'s FTSE 100 indexrose 0.7% to 7,624.88, having closed 1% lower the prior day, with the gauge on pace to register a weekly drop of about 1%, which would mark its first weekly skid in the past month. In France, the CAC 40 indexedged up 0.4% to reach 5,481.07, but was poised for a weekly decline of about 0.6%.

Meanwhile, Italy's FTSE MIB put on 0.6% to 21,551.45, after stumbling out of the gate to start the session and ending down 1.7% Thursday. Those moves come amid government budget discussions that have rattled investors' confidence in the region. The Italian equity gauge is on track to post a weekly decline of 1.9%. Spain's IBEX 35, meanwhile, was up 0.4% to 9,736.10, having logged a 1% drop at Thursday's close, with that setting up a decline of 1.3% over the 5-session trading period.

The eurofetched $1.1575, down 0.1%, from $1.1585 late Thursday in New York.

What's driving markets

European trading appeared to be taking its tone from the U.S., where cheers for Apple Inc. (AAPL) surpassing $1 trillion in market value as a publicly traded company helped lift the technology and internet-related sector and the Nasdaq Composite Index , which momentarily dulled worries about trade and tariffs Thursday. The Stoxx Europe 600 Technology Index was up 1% on Friday.

Despite that, the U.S.-China tensions are still on investors' radar, with few signs that President Donald Trump's administration will ease off on its threat Wednesday to more than double proposed tariffs (http://www.marketwatch.com/story/trump-seeks-25-tariffs-on-200-billion-of-goods-imported-from-china-2018-08-01) on $200 billion of Chinese goods.

In main focus for major global markets, is the release of the U.S. monthly jobs report, which plays a part in the monetary policy deliberations of the Federal Reserve and could influence the investment climate across the globe. The reading on average hourly earnings will be watched for what it implies for inflation and rising prices.

Stock movers

Among techs, BE Semiconductor Industries NV (BESI.AE) shares rose 5%, while sensor developer AMS AG (AMS.EB) added 4%. Silicon wafer maker Siltronic AG (WAF.XE) put on 3.7%, and chip company ASM International NV (ASMIY) added 2.5%. STMicroelectronics (STM) moved 2.4% higher.

But packaging and paper company Mondi PLC (MND.JO) led the advancers, up 6% after reporting higher profit (http://www.marketwatch.com/story/mondi-pretax-profit-rises-6-on-higher-prices-2018-08-03) in a well-received earnings report.

At the other end, the decliners were led by William Hill PLC (WMH.LN), sliding 7.5%. The British bookmaker swung to a pretax loss (http://www.marketwatch.com/story/william-hill-profit-hit-by-betting-terminal-ruling-2018-08-03) as it booked a charge related to a cap on stakes on betting terminals.

IAG (IAG.LN) shares lost 3.7% after the British Airways parent's North American per-seat unit revenue fell (http://www.marketwatch.com/story/iag-shares-fall-as-n-america-revenue-disappoints-2018-08-03), missing expectations for a rise.

Economic docket

Official figures for services activity in the eurozone in July fell short of forecasts. The purchasing managers index came in at 54.2, compared with 54.4 expected and 55.2 the previous month. The composite PMI, a combined reading on services and manufacturing, was at 54.3, in line with forecasts but below June's 54.9. A level above 50 signifies expansion.

Eurozone retail sales were up 0.3% in June on the month and up 1.3% on the year, Eurostat said Friday (http://ec.europa.eu/eurostat/documents/2995521/9105340/4-03082018-AP-EN/4bea9201-cf62-477a-a827-060560d5ebea). Growth of 0.4% compared with May and 1.4% on 2017 was expected, in a setback for the European Central Bank's inflation aim.

The U.S. nonfarm-payroll report is scheduled for release at 1:30 p.m. London time, or 8:30 a.m. Eastern Time.

(END) Dow Jones Newswires

August 03, 2018 06:25 ET (10:25 GMT)

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