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Europe close: Timid bounce for stocks

By Alexander Bueso

Date: Friday 07 Dec 2018

Europe close: Timid bounce for stocks

(Sharecast News) - Most of the main stockmarket gauges on the Continent put in a small bounce at the end of the week, helped by the Organisation of Petroleum Exporting Countries's decision to cut production in a bid to prop up prices.
But market sentiment continued to be quite fragile, amid considerable market commentary highlighting that the detention of Chinese technology giant Huawei's finance chef was a poor omen for the likelihood of successful trade talks between the US and China, although not all observers were quite as pessimistic.

That included JP Morgan boss Jamie Dimon, who in remarks overnight to broadcaster CNBC put the odds of success at 60:40, while adding that it was unlikely the White House knew the Huawei executive was about to be detained.

By the close of trading, the benchmark Stoxx 600 was higher by 0.62% or 2.14 points at 345.45, alongside a 0.68% or 32.67 point advance for the Cac-40 to 4,813.13, even as the Dax dipped by 0.21% or 22.89 points to 10,788.09.

In parallel, front month Brent crude oil futures were up by 2.37% after OPEC and its allies announced that they would cut their combined output by 1.2m barrels a day starting from January.

Euro/dollar meanwhile was advancing by 0.26% to 1.14120.

Economic data on the other side of the Channel was mixed at the end of the week.

According to the German Ministry of Finance, industrial production in the Eurozone's largest economy shrank at a 0.5% month-on-month clip in October (consensus: 0.3%).

Over in France on the other hand, industrial output jumped by 1.2% versus September (consensus: 0.8%), INSEE said.


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