By Emily Horton
European markets bounced back on Friday after Apple’s sales downgrade triggered a downward spiral for global markets.
Oil stocks have gained but media and manufacturing stocks remain under pressure.
What did markets do?
All European markets were in the green on Friday, with the Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.89% up 1.2% at 338.06, after finishing down 1% on Thursday.
The U.K.’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.19% jumped by 1.1% to 6,765.42 and France’s CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.23% rose by 1.2%%. Germany’s Dax 30 /zigman2/quotes/210597999/delayed DX:DAX +0.65% rose by 1.5% to 10,576.23.
Italy’s FTSE MIB Italy index /zigman2/quotes/210598024/delayed IT:I945 +0.31% was the biggest regional gainer, adding 1.8% to 18,550.28.
The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.0950% climbed to $1.1414 from $1.1395 late in New York on Thursday, while the pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.1142% rose to $1.2671 from $1.2634.
What is driving the markets?
The likelihood of a global economic slowdown has started to sink into the markets, after Apple Inc. /zigman2/quotes/202934861/composite AAPL +0.19% announced a surprise sales projection downgrade late Wednesday. CEO Tim Cook attributed a sharp fall in iPhone revenue to the reduction in Chinese consumer spending.
But there was better news for the Chinese economy on Friday; China’s service sector expanded at a slight quicker rate in December, according to Caixin China services purchasing manager’s index. Trade negotiations between China and the U.S. are also set to resume on Monday, Bloomberg News reported .
In the U.S., House Democrats on Thursday passed a spending package in an attempt to end a partial government shutdown. But they did so without funding for President Donald Trump’s U.S./Mexico border wall. House Speaker Nancy Pelosi said the “wall is an immorality. It isn’t who we are as a nation.”
What stocks are active?
Pharmaceutical stock Galapagos NV /zigman2/quotes/208057460/delayed NL:GLPG -0.08% gained 5%. In the energy sector, John Wood Group jumped by 4% and Norway-listed oil company Aker BP gained just over 4%
Media stocks took a hit on Friday, with Germany’s ProSiebenSat.1 Media SE /zigman2/quotes/200272314/delayed DE:PSM +2.39% down 5% and ITV PLC /zigman2/quotes/205378065/delayed UK:ITV -0.37% falling by 2%.
German manufacturer Osram Licht AG /zigman2/quotes/205623891/delayed DE:OSR +0.57% lost 3%.