EUROPE MARKETS: European Stocks Higher; DAX Set To Close 2018 With Biggest Loss In 10 Years

By Emily Horton

German stocks were poised for their worst annual return in 10 years on the last trading day for that country Friday, while the rest of Europe logged firm gains.

Wall Street trading remained volatile after a wild week of trading.

What did markets do?

Gaining back some of Thursday's losses the Stoxx Europe 600 jumped by 2% to 336.17, after ending down 1.7% the previous day -- which marked a new 52-week low for trading on this market. For the week, the index is down 6% and 14% lower for 2018 with just one half-day session on Monday left.

The Stoxx Europe 50 index rose 1.9% to 2,992.17, and slipped into a bear market.

The U.K.'s FTSE 100 saw the strongest gain, rising 2.2% to 6,731.77, after finishing down 1.5% on Thursday.

France's CAC 40 gained 2% to 4,690.26, while Italy's FTSE MIB Italy index rose by 1.4% to 18,318.29.

On it is last day of trading for the year, the Germany's DAX 30 jumped by 1.7% to 10,558.96, and its overall market performance for 2018 was down by just under 18%, which would make for the biggest annual loss since a 43% plunge in 2008.

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 8%.

Among banks, UBS Group AG rose by just over 4% and pensions provider Old Mutual Ltd. (OMU.LN) was up by close to 3%.

(END) Dow Jones Newswires

December 28, 2018 09:37 ET (14:37 GMT)

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