Europe close: Stocks end week on a positive note
By Alexander Bueso
Date: Saturday 19 Nov 2022
(Sharecast News) - European shares extended gains on Friday with miners leading the way, as investors went bargain hunting after two days of losses.
"Stocks are once again shrugging off warnings about high interest rates in the US, and it appears the normal seasonal tendency of equities to rally in Q4 has asserted itself once again," said IG chief market analyst Chris Beauchamp.
"Indeed, the fact that Fed speakers continue to bang the hawkish drum, but to little apparent effect, might suggest that traders still have their hearts set on a risk-rally into the end of the year, even if that sets everyone up for a fall in January."
The pan-European Stoxx 600 index rose 1.16% to 433.33 with all major regional bourses higher.
Germany's Dax meanwhile put on 1.16% to 14,431.96 and France's Cac-40 added 1.04% to end at 6,644.46.
Morning trade had been tempered by hawkish comments from St. Louis Fed President James Bullard, who said interest rates might need to reach 5-5.25% to be "sufficiently restrictive" to curb inflation.
"Thus far, the change in the monetary policy stance appears to have had only limited effects on observed inflation, but market pricing suggests disinflation is expected in 2023," he said.
In the UK October retail sales fell 6.1% year-on-year, slightly better than analysts were expecting for a fall of 6.5%.
Month-on-month there was a bigger than expected pick up of 0.6% versus forecasts of 0.3% and swinging from a slide of 1.5% in September when sales were hit by the bank holiday for the state funeral of Queen Elizabeth.
In equity news, UK insurer Legal & General gained 3% after an upbeat trading statement.
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