European stocks were set to close the week on a positive note Friday, though losses in the financial sector were keeping a lid on gains as Danske Bank AS tumbled on news of a U.S. probe.
What are markets doing?
For the week, the pan-European gauge was so far up 0.9%, but down just over 3% year to date.
What is driving the market?
Growing upbeat sentiment surrounding global trade were also helping to underpin gains. A fresh round of trade talks could take place later this month after the White House reportedly extended an invitation to Chinese officials. As well the Turkish central bank’s move to bolster its currency on Thursday also helped foster some appetite for risk.
Economic data from the U.S. was swinging into focus in the afternoon, as data showed retail sales for August rising 0.1% by the smallest amount in six months.
In the U.K., Brexit was in the headlines again after Bank of England Gov. Mark Carney reportedly told Prime Minister Theresa May and her cabinet on Thursday that a no-deal exit from the European Union would cripple the country’s economy.
What are strategists saying?
“Encouraging news that Trump’s administration seeks to start negotiating with China again to resolve their trade differences is helping investors’ sentiment,” said Konstantinos Anthis, head of research at ADS Securities, in a note to clients.
Banks were in the spotlight, with Danske Bank AS
dropping 3% after The Wall Street Journal reported that the U.S. was probing money laundering allegations. Citigroup Inc.
and Deutsche Bank AG
were also identified by that whistleblower as being involved in the transactions, the report said.
Shares of Deutsche Bank fell 0.5% and Citigroup was off 0.2% in premarket trading in the U.S.
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