Investing.com – European shares closed higher Friday on strong earnings despite U.S. GDP numbers signaling a potential economic slowdown.
At the close of European trade, the EURO STOXX 50 gained 0.92%, France's CAC 40 jumped 1.14%, while Germany’s DAX climbed 0.91%. Meanwhile, in the U.K. the FTSE 100 added 0.49%.
Corporate earnings drove shares higher, despite the Gross Domestic Product numbers indicating that the U.S. economy expanded at a 2.2% rate in the first quarter, missing the 2.5% increase projected by economists, casting doubts on the economic growth.
Counteracting the U.S. GDP weakness, U.S. UoM consumer sentiment rose unexpectedly last month, data showed on Friday.
In a report, the University of Michigan said that consumer sentiment rose to a seasonally adjusted 76.4, from 75.7 in the preceding month.
Analysts had expected UoM consumer sentiment to remain unchanged at 75.7 last month.
Adding to global growth concerns, S&P slashed Spain’s long term debt rating to BBB+ reporting that the outlook is negative in the face of the recession undermining efforts to cut the budget deficit.
In other Spanish news, the jobless rate spiked to 24.4%, hitting an eighteen year high, the National Statistics Institute reported.
Meanwhile, in Japan, the central bank expanded its plan for government-bond purchases by 10 trillion yen to support the economy.
On the pro global growth side, data indicated Switzerland’s KOF economic barometer rose more-than-expected to a seasonally adjusted 0.40 last month from 0.09 in the preceding month whose figure was revised up from 0.08.
Analysts had expected the KOF economic barometer to rise to 0.26 last month.
Sandvik soared 12% as the company’s first quarter profit beat analyst estimates.
Man Group gained 12% on a Societe Generale upgrade to buy for the world’s largest hedge fund manager.
U.S. stocks are trading higher midsession with the Dow ahead by 0.21%, the S&P 500 gaining 0.13% and the Nasdaq adding 0.38%.
At the close of European trade, the EURO STOXX 50 gained 0.92%, France's CAC 40 jumped 1.14%, while Germany’s DAX climbed 0.91%. Meanwhile, in the U.K. the FTSE 100 added 0.49%.
Corporate earnings drove shares higher, despite the Gross Domestic Product numbers indicating that the U.S. economy expanded at a 2.2% rate in the first quarter, missing the 2.5% increase projected by economists, casting doubts on the economic growth.
Counteracting the U.S. GDP weakness, U.S. UoM consumer sentiment rose unexpectedly last month, data showed on Friday.
In a report, the University of Michigan said that consumer sentiment rose to a seasonally adjusted 76.4, from 75.7 in the preceding month.
Analysts had expected UoM consumer sentiment to remain unchanged at 75.7 last month.
Adding to global growth concerns, S&P slashed Spain’s long term debt rating to BBB+ reporting that the outlook is negative in the face of the recession undermining efforts to cut the budget deficit.
In other Spanish news, the jobless rate spiked to 24.4%, hitting an eighteen year high, the National Statistics Institute reported.
Meanwhile, in Japan, the central bank expanded its plan for government-bond purchases by 10 trillion yen to support the economy.
On the pro global growth side, data indicated Switzerland’s KOF economic barometer rose more-than-expected to a seasonally adjusted 0.40 last month from 0.09 in the preceding month whose figure was revised up from 0.08.
Analysts had expected the KOF economic barometer to rise to 0.26 last month.
Sandvik soared 12% as the company’s first quarter profit beat analyst estimates.
Man Group gained 12% on a Societe Generale upgrade to buy for the world’s largest hedge fund manager.
U.S. stocks are trading higher midsession with the Dow ahead by 0.21%, the S&P 500 gaining 0.13% and the Nasdaq adding 0.38%.