Share

Europe stocks close slightly higher; Maersk down 17%

Jenni Reid

This is CNBC's live blog covering European markets.

European stock markets closed cautiously higher on Friday, rounding off a weekly rally powered by a series of solid earnings and a perceived dovish tilt from central banks.

The Stoxx 600 ended 0.2% higher, led by retail stocks, which were up 1.7%. Oil and gas saw the biggest drop, down by 2.2%.

European markets


The index withheld the downward drag from shipping giant Maersk, which plummeted 17% after saying profits would come in at the low end of guidance and announcing 10,000 job cuts.

Embattled Siemens Energy closed more than 9% higher, following reports that it is considering the sale of its stake in India's Siemens Ltd as a way to strengthen its balance sheet.

U.S. stocks had their best day since June and U.S. and European government bond yields retreated after the Federal Reserve on Wednesday held rates and markets raised bets that the central bank has hit peak rates and cuts are on the horizon.

These moves continued Friday after U.S. jobs figures were weaker than expected.

"Traders are taking the U.S. central bank's second pause in a row as a clear indication that the Fed won't hike any more, and bond prices are implying that the first rate cut will come mid-2024," said George Lagarias, chief economist at Mazars Wealth Management.

"However, I think we should be careful. The Fed hasn't explicitly committed to a particular course of action, and certainly not to a rate cut in eight months. Inflation is far from beaten... While it is no longer the central scenario, it is not, and should not be, wholly unthinkable that the Fed would raise rates again, allowing short yields to rebound."

The Bank of England meanwhile held rates for a second consecutive meeting.

BOE Governor Andrew Bailey told CNBC on Thursday that interest rates would have to be held "in restrictive territory for some time."

Like Christine Lagarde, president of the European Central Bank — which last week also held rates steady — he said it was too early to talk about rate cuts and that risks to inflation remain.

Third-quarter earnings have also been driving stock movements this week, with companies including Shell, Novo Nordisk, Lufthansa and BT boosted by beating expectations.

In Asia-Pacific, markets closed higher after China's service sector expanded at a slightly faster pace.

U.S. jobs figures further boost stocks, bonds

European and U.S. stocks and bonds rallied Friday after U.S. payrolls came in weaker than anticipated, further fueling expectations that the Federal Reserve could be through with rate hikes.

U.S. Treasury yields fell sharply, along with both short- and long-dated U.K. and German government bond yields, extending similar moves on Thursday. Yields move inversely to prices.

"The weak but not too weak U.S. October payrolls numbers have increased investors' confidence that U.S. interest rates have peaked and the US economy will be able to pull off a soft landing," to Nick Brooks, head of economic and investment research at ICG, said in emailed comments.

"Markets have reacted strongly, with risk assets rising sharply and developed economy government bonds yields dropping."

Loading chart...

— Jenni Reid

U.S. stocks open higher Friday

The major averages opened higher Friday.

The Dow Jones Industrial Average jumped 175 points, or 0.5%. The S&P 500 rose 0.5%, while the Nasdaq Composite added 0.4%.

— Sarah Min

U.S. jobs grow at slower-than-expected pace in October

The Labor Department said Friday that the U.S. economy added 150,000 in October. That's slightly below a Dow Jones forecast of 170,000.

Average hourly earnings, a closely watched data point in the report for inflation trends, rose 0.2% last month. That's also a smaller-than-expected increase. The unemployment, meanwhile, climbed to 3.9% versus a forecast of 3.8%.

— Fred Imbert

Concept of a U.S. soft landing is dead, strategist says

Concept of a U.S. soft landing is dead, strategist says
watch now
VIDEO4:4704:47
Concept of a U.S. soft landing is dead, strategist says
Squawk Box Europe

Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International, explains why the U.S. economy is not heading for a "landing" of any kind.

Europe stocks to open higher

IG data shows European markets opening higher, with the FTSE 100 up 26 points at 7,473, France's CAC 40 up 22 points at 7,085, and Germany's DAX up 53 points at 15,197.

— Jenni Reid

China services activity rebound slightly in October: Caixin survey

China's service sector expanded at a slightly faster pace in October, according to the Caixin services survey.

The purchasing managers index came in at 50.4, just above September's reading of 50.2. Caixin wrote that this pointed to a sustained rise in service sector business activity, but the reading meant only a marginal rate of growth overall.

China's services sector has remained in expansionary territory for 10 straight months, according to Caixin.

— Lim Hui Jie

CNBC Pro: Goldman Sachs updates its 'directors’ cut’ list of top Europe stocks with major upside

A potential recession, high inflation levels and uncertainty around energy markets are just some reasons why investors are steering clear of Europe right now – but Goldman Sachs remains positive on a number of stocks in the region.

The investment bank updated its "conviction list – directors' cut" stocks to buy in Europe in an Oct. 31 note, describing it as "a curated list of our most differentiated fundamental Buy ideas across our European coverage."

The updated list includes one key stock addition.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

CNBC Pro: Bonds or stocks? Wall Street shares its preference — and how to invest

Should an investor go for bonds or stocks in the near to medium term?

Both markets have been volatile recently, which could make it a difficult choice for traders.

Stocks rallied after the U.S. Federal Reserve's decision to keep interest rates steady, but Fed Chair Jerome Powell stressed that the central bank hasn't begun considering a rate cut, and won't until inflation is under control.

CNBC Pro takes a look at what Wall Street pros are saying.

Subscribers can read more here.

— Weizhen Tan

How extensive and broad was Thursday's stock market rally? Very.

Ninety percent of the entire volume of shares that changed hands on the New York Stock Exchange on Thursday advanced in price. Less than 10% declined. On the Nasdaq Stock Market, some 82% of volume was higher while less than 18% was lower in price.

Advancing stocks outnumbered declining issues by almost 9-1 on the New York Stock Exchange versus about 7-2 on the Nasdaq. Total volume of shares traded on both markets was about 15% above the past month's daily average.

Seven of the main 11 stock sectors climbed more than the S&P 500's 1.89% gain, led by energy and real estate (both up 3.1%), and financials (ahead 2.4%). Laggards were led by communication services (up 0.9%), consumer staples (up 1.3%) and health care (higher by 1.6%).

In addition to the boost to stocks that stemmed from retreating Treasury yields, prices were also lifted by a weaker dollar. The DXY dollar index fell 0.66% Thursday.

— Scott Schnipper