EUROPE MARKETS: European Stocks End The Week Higher; DAX Logs Worst Annual Decline In 10 Years

By Emily Horton

German stocks booked a sharp gain on Friday, but recorded the worst annual return in 10 years. Meanwhile, Europe's benchmarks followed strong advances in the U.S.

What did markets do?

Recapturing some of Thursday's losses, the Stoxx Europe 600 jumped 2% to end at 336.23, after closing down 1.7% the previous day -- which marked a new 52-week low. For the week, the index finished off by 0.1% and 13.6% lower for 2018 with just one half-day session on Monday left.

The Stoxx Europe 50 index rose 2.2% to close at 2,755.16.

The U.K.'s FTSE 100 finished 2.3% to 6,733.97, after falling 1.5% on Thursday. The day's action represented the best advance for the index since April 5.

France's CAC 40 gained 1.7% to end at 4,678.74, while Italy's FTSE MIB Italy index rose by 1.4% to 18,324.03.

On its last day of trading for the year, the Germany's DAX 30 jumped by 1.7% to close at 10,558.96, and its overall market performance for 2018 was a loss of 18.3%, marking the steepest annual drop since a more than 40% plunge in 2008. Germany's stock market will be closed on New Year's Eve.

The euro rose to $1.1467 from a level of $1.1433 late Thursday in New York, while the pound dropped slightly to $1.2684 from $1.2643 late Thursday.

What is driving the markets?

Oil prices rebounded (http://www.marketwatch.com/story/oil-prices-rebound-a-day-after-another-big-pullback-supply-data-ahead-2018-12-28) on Friday, lifting big energy names, such as BP PLC (BP.LN) . (BP.LN) Investors have been wrestling with growing fears that a deterioration in appetite for so-called risk assets from oil to stocks was a sign of economic slowdown economic expansion.

Despite a wild week of trading in the U.S., the S&P 500 is set to end the week with a 3% gain. However, investors were wary after Wall Street's drastic market oscillations, with Asian markets only making cautious gains (http://www.marketwatch.com/story/nikkei-retreats-while-other-asian-markets-eke-out-cautious-gains-2018-12-27) on Thursday off the back of the market turnaround in the U.S. (https://www.bloomberg.com/news/articles/2018-12-27/euro-stoxx-50-enters-bear-market-as-year-end-rally-hope-vanishes)

What stocks are active?

Manufacturer AMS AG (AMS.EB) topped the Europe Stoxx 600 gainers, rising by 10.2%.

Among banks, UBS Group AG rose 4.1% and pensions-provider Old Mutual Ltd. (OMU.LN) finished 2.3% higher.

(END) Dow Jones Newswires

December 28, 2018 13:53 ET (18:53 GMT)

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