European stocks traded higher Friday, with investors buoyed by the news that U.S. President Donald Trump will meet Chinese counterpart Xi Jinping next week, helping ease trade tensions.
The DAX index in Germany gained 0.2%, the CAC 40 in France was flat and the FTSE 100 in the U.K. rose 0.7%.
Trump to meet Xi next week
The White House confirmed on Thursday that Trump will meet Xi in South Korea during next week’s APEC summit, a development that buoyed markets after recent heightened U.S.–China trade friction.
The planned meeting follows Washington’s threat to impose 100% tariffs on certain Chinese goods and Beijing’s introduction of export curbs on rare earth materials.
The prospect of renewed dialogue lifted investor hopes for de-escalation in trade disputes between the two largest economies in the world that have clouded the global outlook.
That said, Trump also said that all trade negotiations with Canada have been terminated, accusing Ottawa of using a “fraudulent” advertisement involving late President Ronald Reagan.
Sanofi impresses with profit increase
Back in Europe, there are more corporate results to digest as the new earnings season continues at full pace.
French healthcare company Sanofi (EPA:SASY) reported a larger than expected rise in profit last quarter, lifted by demand for its blockbuster skin and asthma drug Dupixent.
Swedish defence group Saab (ST:SAABb) reported a rise in third-quarter profit, and raised its sales guidance on the back of soaring military spending.
Swiss elevator and escalator maker Schindler (SIX:SCHN) lifted its 2025 EBIT margin guidance after reporting higher operating profit, while revenue and new installation orders were weighed down by foreign exchange effects and weaker demand in China.
French aerospace and defense supplier Safran (EPA:SAF) raised its full-year 2025 outlook, supported by record LEAP engine production and a strong civil engine aftermarket.
Swiss industrial and construction chemicals maker Sika (SIX:SIKA) reported a drop in nine-month sales, and said it would implement structural changes in its persistently weak markets, including cutting up to 1,500 jobs.
U.S. inflation in spotlight
In economic news, U.K. retail sales rose 0.5% on the month in September, surprising many economists who had predicted a drop, suggesting the country’s consumers may be faring better than previously thought.
However, most focus is on the U.S. consumer price index release for September due later in the session, a delayed number that has managed to make it through the U.S. government shutdown.
The U.S. core consumer price index is expected to have held steady at 3.1%, a reading that’s unlikely to impact a widely anticipated rate cut from the Federal Reserve next week.
Crude set for hefty weekly gain
Oil prices continued higher on Friday, on track for weekly gains as fresh U.S. sanctions on Russia’s two biggest oil companies over the war in Ukraine fuelled supply concerns.
Brent futures rose 0.9% to $66.57 a barrel, and U.S. West Texas Intermediate crude futures gained 0.7% to $62.19 a barrel.
Both benchmarks jumped more than 5% on Thursday and were set for about a 8% weekly gain, the biggest since mid-June.
The Trump administration hit Russia’s Rosneft and Lukoil with sanctions on Thursday to pressure the Kremlin leader to end the war in Ukraine. Rosneft and Lukoil together account for more than 5% of global oil output.
Source :
https://www.investing.com/news/stock-market-news/european-stocks-rise-on-trade-hopes-us-consumer-inflation-in-spotlight-4306581
