Europe close: Stocks extend bounce as chip makers gain on Apple news
By Alexander Bueso
Date: Friday 04 Oct 2019
(Sharecast News) - European stocks extended their recent bounce on Friday as Apple suppliers rose on reports of a ramp up in the production of new iPhones, and despite a non-farm payrolls report for September Stateside that analysts described as a "mixed bag".
By the end of trading, the Stoxx 600 was up 0.73% at 380.22, as Germany's Dax gained 0.73% to 12,012.81 and the French CAC 40 climbed by 0.91% to 5,488.32. Meanwhile, London's FTSE 100 was ahead by 1.10% at 7,155.38.
A report from Japanese newspaper Nikkei said Apple would increase production of its new iPhone 11 model by 10%, or 8.0m units, after the smartphone has enjoyed higher demand than anticipated.
The news sent Apple suppliers AMS, Infineon Technologies, STMicro and Dialog Semiconductor higher for the second time this week, having already jumped on Tuesday after Apple chief executive Tim Cook told Bild launch sales had a "very strong start".
From a bird's eye view, the Stoxx 600's sub-index of technology companies finished the session 1.3% higher.
US non-farm payrolls increased by 136,000 last month (consensus: 140,000) and readings for the previous two months were revised higher by a combined 45,000, while average hourly earnings were flat month-on-month (consensus: 0.2%).
However, the rate of unemployment fell by two tenths of a percentage from the month before to reach 3.5% (consensus: 3.7%).
In Brexit news, European Council President Donald Tusk said he was "not convinced" by exit deal proposals from UK Prime Minister Boris Johnson, as the 31 October deadline creeps ever closer.
Among individual stocks, banks were broadly lower, with Banco BPM, CYBG, Bank of Ireland and Commerzbank all among the top fallers.
UK high street retailer Marks & Spencer was also on the way downward after analysts at HSBC cut the stock from 'hold' to 'reduce'.
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