European Stocks Recover From Early Weakness, Close Slightly Higher

(RTTNews) - European markets recovered from early weakness on Friday, and a few markets even managed to close in positive territory, as stocks found some support late afternoon amid hopes about a new coronavirus relief package in the U.S.

Weaker than expected economic data from U.S. and Europe raised expectations that central banks will announce more stimulus sooner than later.

The early weakness was due to a tweet from U.S. President Donald Trump that he and his wife Melania Trump tested positive for Covid-19. Trump confirmed that they were going into quarantine.

The news resulted in increased uncertainty about the upcoming presidential election and prompted investors to press some sales. The continued surge in virus cases across Europe and several states in America, and a lack of progress in Brexit talks weighed as well.

In France, Minister of Health Olivier Véran on Thursday warned that the capital Paris may go on maximum virus alert from Monday to control the spread of the virus.

In Germany, Spain and several other countries, authorities are focusing on reining in nightlife to curb a marked rebound in coronavirus infections that started in early July.

The pan European Stoxx 600 advanced 0.25%. The U.K.'s FTSE 100 moved up 0.39%, France's cAC 40 edged up marginally and Germany's DAX fell 0.33%. Switzerland's SMI edged up 0.14%.

Among other markets in Europe, Austria, Belgium, Netherlands, Poland, Spain and Turkey closed higher.

Czech Republic, Denmark, Greece, Iceland, Ireland, Portugal, Russia and Sweden ended weak, while Finland and Norway closed flat.

In the UK market, Evraz surged up 2.7%, while British Land Company, Standard Life, WPP, Right Move, Legal & General and Land Securities gained 2 to 2.5%. Lloyds Banking Group, Pearson, Glencore, Prudential and ITV also ended notably higher.

Melrose declined more than 5%. Rolls-Royce Holdings, HomeServe, EasyJet, Ocado Group, IAG, Burberry Group and BP lost 1.75 to 3%.

TUI shares declined sharply. Responding to press reports, the travel and tourism company said that it continues evaluating various measures to achieve an optimal balance sheet structure and maturity profile, due to volatile market environment resulting from the Covid 19 crisis.

In France, Vinci gained about 4%. Essilor moved up 2.25%, while Orange, Legrand, Vivendi and Bouygues gained 0.7 to 1.7%.

On the other hand, WorldLine, Accor, Credit Agricole, Carrefour, Dassault Systemes, Technip and Pernot Ricard lost 1 to 3%.

In the German market, RWE, E.ON, Deutsche Bank, BASF and Continental ended notably higher.

Wirecard plunged more than 7% and Thyssenkrupp lost more than 5.5%. Bayer, Lufthansa, MTU Aero, Volkswagen, Fresenius and Infineon Technologies also ended sharply lower.

In the Spanish market, shares of construction company ACS skyrocketed after the company revealed that its rival Vinci has submitted a bid to buy its construction business Cobra for 2.8 billion euros.

In economic releases, Eurozone consumer prices declined for the second straight month in September, flash data from Eurostat showed.

Consumer prices decreased 0.3% on a yearly basis, following a 0.2% drop in August. Prices were expected to fall again by 0.2%. The 0.2% decrease in August was the first drop since May 2016.

The European Central Bank aims to keep inflation "below, but close to 2%."

In economic news from U.S., a report from the Labor Department showed non-farm payroll employment rose by 661,000 jobs in September after spiking by an upwardly revised 1.489 million jobs in August.

Economists had expected employment to increase by 850,000 jobs compared to the jump of 1.371 million jobs originally reported for the previous month.

The disappointing data raises concerns about the economy. However, it is hoped that the report will likely put further pressure on lawmakers to pass a new stimulus bill.