European shares end week higher on media, retail boost
By Ankika Biswas and Bansari Mayur Kamdar
(Reuters) -Europe's benchmark share index edged up on Friday to close higher for a second straight week, while investors assessed data from Germany for clues about the country's economic outlook.
The pan-European STOXX 600 rose 0.4% to close out the week with a 0.9% gain as investors focused on corporate earnings and the prospect of rate cuts.
«It's just a hangover from the U.S. Thanksgiving, investors don't want to take any fresh positions when they're not entirely sure whether the peak Fed rate narrative is a story to keep running with,» said Giles Coghlan, chief market analyst at brokerage GCFX.
Euro zone government bond yields were set to close the week higher as investors balanced recession fears against comments from European Central Bank policymakers pushing against market expectations for rate cuts in 2024.
«Central bankers are understandably communicating in a very cautious way...if they communicate that rate cuts are definitely coming, then they're going to create the problem they're trying to solve,» Coghlan added.
Shoppers took to stores across the world on a Black Friday that appeared to be subdued compared to prior years, looking for discounted electronics, clothing and household goods in the kickoff to the holiday shopping season crucial to big retailers.
For the week, real estate shares lagged while media and retail stocks were the top performers.
The chemicals sector led Friday's gains with a rise of 0.9% as Germany's BASF climbed 1.8% after Bloomberg News reported Abu Dhabi National Oil Co is exploring a potential acquisition of its Wintershall Dea unit.
Forvia and Continental climbed 2.5% and 2.0%, respectively, after Barclays upgraded both of the car parts
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