European Equity Markets Open Higher to Cap Positive Week for Stocks
European equity markets opened higher on Friday, capping a positive week for stocks. The U.K.’s FTSE 100 and Germany’s DAX opened higher by 0.2%, while France’s CAC 40 gained 0.7% in early trade. The pan-European Stoxx 600 index was in positive territory by 0.5%.
Luxury stocks such as Burberry, which jumped 12% after reporting a shallower-than-expected dip in sales, were among the biggest gainers. Moncler, Swatch, and Christian Dior were also trading higher.
Overnight, Asian stocks climbed higher after the S&P 500 hit a record high in Thursday’s trading session in the U.S. President Donald Trump called for lower interest rates and cheaper oil prices in a policy speech at the World Economic Forum in Davos, Switzerland. Trump did not mention the Federal Reserve by name but made it clear he would seek lower rates.
The Bank of Japan raised its policy rate by 25 basis points to 0.5%, in line with economists’ expectations, and the Japanese yen weakened slightly to trade at 155.18 against the dollar. Investors are looking ahead to the Federal Reserve’s FOMC meeting on Wednesday, with no change expected to interest rates.
Elsewhere, equity markets in China will be closed from Tuesday for the Lunar New Year holiday.
