European stocks surged at the end of the week, with a weaker London market weighing on sentiment for much of the session as the UK government unveiled tough new measures after the lockdown.
The pan-European Stoxx 600 index had moved into positive territory, up 0.41% to 393.23 as the UK FTSE reversed course to trade 0.07% to 6,367.58.
France’s CAC 40 rose 0.56% to 5,598.18 and Germany’s DAX rose 0.37% to 13,335.68.
U.S. markets were shut down overnight for the Thanksgiving holiday, which did little to boost Asian stocks, although Chinese industrial profit data for October showed a 28.2% increase, the best gain in one month since December 2011.
“As the last full week of trading in November draws to a close, we find the markets are still in a cautiously positive mood. This has been a great month, of course continuing the good run since March for many markets, and although it may not continue. a top there is still no sign of a correction on the horizon, ”said IG Chief Market Analyst, Chris Beauchamp.
“However, the high sentiment and the breadth of the readings should give investors pause for thought, the legitimate question being how much of the gain expected in December was carried over to the previous month.”
In the UK, the government has unveiled a more stringent tiered system that will take effect when the last nationwide lockdown ends on December 2, with tier 3 being the most severe.
All-restriction-sensitive stocks were weaker in most of Friday’s trading, although by the end of the session EasyJet, International Hotels Group and Cineworld had all arrived.
Investors were also considering the resumption of face-to-face Brexit talks in London this weekend as the two sides scramble to strike a deal. EU chief negotiator Michel Barnier called for a meeting of EU fisheries ministers today before the recovery.
“Given that this is one of the top three obstacles to concluding a trade deal, a meeting like this so late today may indicate that there is a broad framework agreed with the UK. United, at least on fishing rights, “CMC Markets said Britain’s Michael Hewson.
In the equities news, shares of Spanish lender Banco Sabadell plunged 14% after merger talks with rival BBVA were called off after the pair failed to agree on financial terms.
The two banks announced the negotiations on November 16 as they sought an agreement to create Spain’s second national bank with nearly € 600 billion in assets. BBVA shares rose 5%.
Shares of UK drugmaker AstraZeneca edged up 0.28% as questions were raised about the results of its advanced stage vaccine study that could hamper the company’s early approval in the US and in the EU.
The chief executive of the company said the company is likely to conduct an additional global trial to assess the effectiveness of the vaccine using a lower dose.
JD Wetherspoon shares recovered after an early sale after the company said half of its ads would be closed under the new post-lockout restrictions, with CEO Tim Martin saying the government replaced some form of lockdown by another by stealth.
Shares of outsourcing group Capita fell as the company revealed it was in talks with private equity firm Montagu over the divestiture of its educational software business.