EUROPE MARKETS: Europe Stocks Rise As Investors Digest ECB Announcement

By Emily Horton

European stocks ticked up on Friday, as investors digested Thursday's interest rates announcement from the European Central Bank's and eye up a possible resolution to the U.S. - Mexico dispute over tariffs and immigration.

How did markets perform?

The Stoxx Europe 600 index climbed by 0.6% to 376.28 on Friday, after remaining flat the previous day.

In Germany, the DAX (DAX) added 0.5% to 12,015.79, France's CAC 40 advanced 1% to 5,331.70 and Italy's FTSE MIB jumped by 0.6% to 20,295.39.

Meanwhile, the U.K.'s FTSE 100 moved up by 0.6% at 7,301.69, after adding 0.55% on Thursday.

The pound rose to $1.2709 from $1.2692 the previous day. The euro also edged down to $1.1262, after finishing at $1.1277 on Thursday.

What's moving the markets?

Following on from firmer Asia-Pacific stocks, European markets gained on the hopes that a deal between the U.S. and Mexico could be struck before tariffs take effect next week.

Late on Thursday evening, the Mexican government offered to deploy 6,000 National Guard officers to stop the inflow of migrants from Central America to the U.S. in an attempt to prevent President Donald Trump's tariff threat, Reuters reported (https://www.reuters.com/article/us-usa-trade-mexico-nationalguard/mexico-offers-to-send-national-guard-to-southern-border-to-stem-migration-sources-idUSKCN1T72NY).

European investors were also encouraged by the European Central Bank's decision on Thursday to leave interest rates unchanged (http://www.marketwatch.com/story/european-central-bank-says-now-plans-to-leave-rates-on-hold-at-least-through-first-half-2020-2019-06-06) and extend the period it expects rates to remain on hold through at least the first half of 2020. Later today, investors will turn to expected U.S. jobs data for more indications on the scale of potential interest rate cuts in the world's biggest economy.

German industrial production fell more sharply (http://www.marketwatch.com/story/german-industrial-production-falls-sharply-2019-06-07)than expected in April, amid weak manufacturing orders and business sentiment. The Bundesbank, Germany's central bank, lowered the country's economy growth forecast (http://www.marketwatch.com/story/bundesbank-cuts-german-growth-view-amid-slowdown-2019-06-07) blaming the manufacturing downturn.

In the U.K., Prime Minister Theresa May will step down as leader of the Conservative party on Friday, after failing three times to get her Brexit agreement through Parliament. Meanwhile, in a crucial by-election in the U.K. constituency of Peterborough, the opposition Labour narrowly retained its parliamentary seat, fending off threats from the increasingly popular Brexit Party.

Which stocks are active?

French drugmaker Sanofi SA. (SAN.FR) gained 5% on Friday, after appointing Paul Hudson (http://www.marketwatch.com/story/sanofi-ceo-retires-replaced-by-paul-hudson-2019-06-07), a top executive from rival pharmaceutical giant Novartis AG (NOVN.EB), as its chief executive. Hudson will replace the firms current CEO Olivier Brandicourt.

The stock price of Danish biotech gaint Novozymes A/S Series B (NZYM-B.KO) sank by 8%, after the firm reportedly (https://www.cnbc.com/2019/06/07/european-markets-eye-us-jobs-report-and-trade-news.html) downgraded its outlook.

(END) Dow Jones Newswires

June 07, 2019 07:53 ET (11:53 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.