European stocks climbed on Friday, continuing their rally as investors were cheered by positive corporate earnings and hopes for a breakthrough in US-China trade relations. The main STOXX 600 index rose 0.3%, building on the previous day’s record high, which had been driven by energy stocks following new US sanctions on Russia.
Sentiment was lifted after the White House confirmed that President Trump will meet with his Chinese counterpart next week to address escalating trade tensions and an upcoming tariff deadline.
In other news, sectors like technology and financial services saw gains, and unexpectedly strong British retail sales provided positive data.
Meanwhile, investors are looking ahead to today’s US inflation report, which will offer clues before the Federal Reserve’s meeting next week.
Among companies, Sanofi rose 3.3% on better-than-expected profit, Saab jumped nearly 6% after raising its sales forecast due to increased military spending, and NatWest gained 4.4% after reporting a 30% profit increase and raising its yearly goals.
On the FX front, The US Dollar was steady on Friday and was set to end the week up by a small amount (0.5%) against other major currencies.
The Canadian dollar barely moved, showing the market’s main focus was on the upcoming meeting between President Trump and Chinese President Xi Jinping next week.
The Euro was flat for the day and was on track for a slight weekly loss, despite a survey showing that business activity in the Eurozone grew faster than expected in October, led by the services sector.
Meanwhile, the British pound was down slightly, even though the UK reported stronger-than-expected retail sales, which were helped by people buying gold online.
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