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Tech, auto stocks drive bounceback in Europe

Published 10/12/2018, 03:43 AM
Updated 10/12/2018, 03:50 AM
© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt
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LONDON (Reuters) - European stocks bounced back strongly on Friday from a sharp selloff in world markets, after Asian shares staged a partial recovery overnight.

Euro zone stocks (STOXXE) jumped 1 percent with Germany's DAX (GDAXI) up 1.1 percent while the FTSE 100 (FTSE) gained 0.4 percent.

The main euro zone index was however still set for its biggest weekly fall since February, down 3.7 percent on the week.

Third-quarter results were also beginning to trickle in from European firms, with investors' eyes on Wall Street banks which report earnings later on Friday, formally kicking off the earnings season.

Tech stocks - the worst hit by this week's sudden drop - were the biggest gainers, with the sector index (SX8P) jumping 2.4 percent led by chipmakers Siltronic (DE:WAFGn), AMS (S:AMS), and STMicroelectronics (MI:STM).

The growth-sensitive auto (SXAP) and mining (SXPP) sectors climbed 1.3 to 1.6 percent.

Luxury stocks, which had also suffered sharp falls as investors targeted the most highly-valued parts of the market, climbed too.

Gucci owner Kering (PA:PRTP) topped France's CAC 40 with a 3.1 percent gain, while LVMH (PA:LVMH), Moncler (MI:MONC) and Salvatore Ferragamo (MI:SFER) rose 1.7 to 1.9 percent.

Man Group (L:EMG) shares rose 4.7 percent after the world's largest listed hedge fund reported funds under management increased in the third quarter thanks to investment gains and net inflows.

Broker notes also moved some stocks.

Online retailer Zalando (DE:ZALG) gained 4.3 percent and Asos (L:ASOS) rose 2.9 percent after Credit Suisse (SIX:CSGN) analysts said they were confident that in Europe retail brands preferred the two firms' platforms to Amazon (O:AMZN).

© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

Victrex (L:VCTX) shares fell 2.3 percent after Morgan Stanley (NYSE:MS) downgraded the stock to "underweight".

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