EUROPE MARKETS: European Stocks Rebound To Post 2nd Straight Weekly Rise As Oil Steadies

By Carla Mozee, MarketWatch

Cie. Financière Richemont SA warns of lackluster outlook on luxury market

European stocks rallied Friday, recording their second consecutive weekly gain, as investors' appetite for risk returned after a selloff spurred by concerns about the next U.S. interest-rate hike.

The Stoxx Europe 600 recovered all of the previous session's losses, rising 1.2% to close at 338.01, marking its best daily gain since April 19, according to FactSet. The index booked a 1% gain over the week. Friday's advance was led by energy , financial and basic materials stocks. UniCredit SpA (UCG.MI) jumped 7.6% after reports the Italian lender is considering selling some assets.

Energy shares on Friday gained as oil prices stabilized after hitting a one-week low. Energy producer Tullow Oil PLC (TLW.LN) closed up 2%.

Oil "shooting back higher has...helped to settle the jitters on the equity markets. Maybe the market needs more convincing that a June rate hike will be seen? With the potential for a significant market shock with the U.K.'s EU referendum just after the FOMC in June, I know that I do," said Richard Perry, market analyst at Hantec Markets, in a note.

The U.K. will hold an in/out Brexit referendum on June 23, asking voters whether the country should cut its membership ties with the European Union.

Indexes: The U.K's FTSE 100 gained 1.7% to 6,156.3 (http://www.marketwatch.com/story/ftse-100-bounces-higher-as-fed-effect-fades-2016-05-20) as commodity shares bulked up, led by a 3.6% jump in shares of platinum and diamond producer Anglo American PLC (AAL.LN).

Germany's DAX 30 added 1.2% to 9,916.02, and France's CAC 40 rose 1.7% to 4,353.90.

Italy's FTSE MIB was up 1.5% to 17,812.35, while Spain's IBEX 35 added 1.1% to 8,771.20.

The euro added 0.1% at $1.121.

Movers: Cie. Financière Richemont SA (CFR.EB) shares fell 4.3% after the Cartier parent reported a rise in full-year profit, but said conditions look gloomy for the luxury market in the coming months (http://www.marketwatch.com/story/richemonts-full-year-profit-rises-but-cartier-parent-warns-of-tough-months-ahead-2016-05-20).

"In the near term, we are doubtful that any meaningful improvement in the trading environment is to be expected," Richemont said.

Shares of watchmaker Swatch Group AG (UHR.EB) fell 2.8% but shares of other luxury makers held to higher ground, with Christian Dior SE (CDI.FR) rising 0.5%.

Fiat Chrysler Automobiles NV (FCA.MI) shares recovered from an earlier drop and closed 0.5% higher. The car maker rejected an invitation to meet with German transport ministry officials (http://www.marketwatch.com/story/germany-fiat-chrysler-says-no-to-emissions-talks-2016-05-20) to discuss diesel emissions, the ministry said Thursday.

"This uncooperative behavior is completely incomprehensible," German transport minister Alexander Dorbrindt said in the statement.

(END) Dow Jones Newswires

May 20, 2016 13:49 ET (17:49 GMT)

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