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Nov. 6, 2015, 12:31 p.m. EST

European stocks end higher as euro slammed to six-month low

Sanofi issues downbeat profit outlook

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By Carla Mozee and Victor Reklaitis, MarketWatch


AFP/Getty Images
European Central Bank President Mario Draghi

European stocks closed higher Friday and nabbed a weekly gain, with a dive by the euro after a stronger-than-expected U.S. jobs report giving a boost to exporters.

After losing ground earlier in the session, the Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.46%  rose 0.3% to end at 379.95. The index achieved a weekly rise of 1.2%.

Much of Friday’s gain for the Stoxx 600 came from German equities, which benefited from the euro’s slide to a six-month low against the dollar. Germany’s DAX /zigman2/quotes/210597999/delayed DX:DAX +0.46%  jumped 0.9% to end at 10,988.03, with the index briefly trading above 11,000 for the first time since August.

The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.0601%  recently traded 1.3% lower at $1.0742 in the wake of news that the U.S. economy added 271,000 jobs in October, well above expectations. The euro late Thursday bought $1.0880.

The dollar drove higher on expectations that the U.S. Federal Reserve’s first interest-rate increase in nearly a decade could come as soon as next month. A weaker euro tends to make prices of European-made goods less expensive to purchase for overseas customers. The export-oriented German economy is the largest in Europe.

On the DAX, auto maker BMW /zigman2/quotes/209548467/delayed DE:BMW +2.04%  shares drove up 3.5%, Daimler AG /zigman2/quotes/205332368/delayed DE:DAI +0.80%  closed up 2.2% and HeidelbergCement AG /zigman2/quotes/202418791/delayed DE:HEI +0.19%  also added 2.2%.

A “dovish” monetary policy stance from European Central Bank President Mario Draghi, “coupled with unexpected declines in German factory orders and industrial output, keeps open the possibility that the Federal Reserve and ECB move in opposite directions next month,” said currency analysts at Brown Brothers Harriman, led by Marc Chandler.

Luxury slump: But most luxury names within the consumer-goods sector on Friday lost ground. They were hit on the back of an update from Cie. Financière Richemont /zigman2/quotes/203783259/delayed CH:CFR +1.64% , whose brands include Cartier and Piaget. First-half profit and sales at Richemont, the world’s second-largest luxury group, each missed analyst expectations. Richemont /zigman2/quotes/203783259/delayed CH:CFR +1.64%  dropped 5.7%.

Richemont noted that the key Hong Kong and Macau markets were still “extremely difficult,” although it saw growth in mainland China.

Shares of Swiss watchmaker Swatch Group Ltd. /zigman2/quotes/203516858/delayed CH:UHR -0.49%  fell 4.3%, France’s LVMH Moët Hennessy Louis Vuitton SE /zigman2/quotes/201350549/delayed FR:MC +1.15%  ended 2.7% lower and Christian Dior SE /zigman2/quotes/201058228/delayed FR:CDI +0.83%  lost 1.9%. Britain’s Burberry Group PLC /zigman2/quotes/205386705/delayed UK:BRBY +1.17%   /zigman2/quotes/203108786/delayed BURBY +0.81%  was off 0.7%.

Weakness in the Chinese economy has been a source of pain throughout the year for luxury-goods makers, as well as for mining shares.

As well, the Bank of England on Thursday flagged concerns that China’s slowdown is rippling through emerging markets, and in turn, hurting growth prospects for the U.K. With the central bank downgrading its forecasts for growth and inflation, the pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.1809% took a beating Thursday and extended losses on Friday, dropping 1% in recent trading. Sterling was buying $1.5069 compared with $1.5215 late Thursday.

On Friday, the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.20%  fell 0.2% to end at 6,353.83.

In Paris, the CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.71%  turned up by 0.1% to close at 4,984.15.

Movers: Sanofi SA /zigman2/quotes/206928357/delayed FR:SAN +1.38%  shares fell 6.8% after the French drug maker warned it didn’t expect “any meaningful” profit growth over the next two years. Sanofi is struggling with growing pricing pressure in its key diabetes market.

Syngenta AG  climbed 4.1% following a Wall Street Journal report that the company is discussing with DuPont Co. /zigman2/quotes/203606582/composite DD -0.18%  a potential combination with DuPont’s agriculture division.

BHP Billiton PLC   /zigman2/quotes/208108397/composite BHP +1.41%   /zigman2/quotes/201448516/delayed AU:BHP -2.16%  fell 5.7%, with investors worried about damage caused by a major dam burst to a Brazilian iron-ore operation BHP jointly owns.

AstraZeneca PLC /zigman2/quotes/203048482/delayed UK:AZN +1.50%   /zigman2/quotes/200304487/composite AZN +0.93%  closed down 0.5% after the drug maker agreed to pay $2.7 billion for Californian biotech ZS Pharma Inc.

/zigman2/quotes/210599654/delayed
XX : STOXX
471.88
+2.17 +0.46%
Volume: 0.00
Oct. 22, 2021 11:03p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,542.98
+70.42 +0.46%
Volume: 49,948
Oct. 22, 2021 6:30p
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/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1646
-0.0007 -0.0601%
Volume: 0.0000
Oct. 22, 2021 4:59p
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/zigman2/quotes/209548467/delayed
DE : Germany: Frankfurt
85.85
+1.72 +2.04%
Volume: 1,392
Oct. 22, 2021 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€723,779
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/zigman2/quotes/205332368/delayed
DE : Germany: Frankfurt
82.19
+0.65 +0.80%
Volume: 6,340
Oct. 22, 2021 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€560,333
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/zigman2/quotes/202418791/delayed
DE : Germany: Frankfurt
63.70
+0.12 +0.19%
Volume: 2,682
Oct. 22, 2021 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€306,076
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/zigman2/quotes/203783259/delayed
CH : Switzerland: SWX
CHF 111.85
+1.80 +1.64%
Volume: 1.85M
Oct. 22, 2021 5:31p
P/E Ratio
45.01
Dividend Yield
1.79%
Market Cap
CHF63.27 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203783259/delayed
CH : Switzerland: SWX
CHF 111.85
+1.80 +1.64%
Volume: 1.85M
Oct. 22, 2021 5:31p
P/E Ratio
45.01
Dividend Yield
1.79%
Market Cap
CHF63.27 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203516858/delayed
CH : Switzerland: SWX
CHF 244.20
-1.20 -0.49%
Volume: 114,182
Oct. 22, 2021 5:31p
P/E Ratio
24.36
Dividend Yield
1.43%
Market Cap
CHF12.48 billion
Rev. per Employee
CHF172,557
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/zigman2/quotes/201350549/delayed
FR : France: Euronext Paris
667.30
+7.60 +1.15%
Volume: 423,275
Oct. 22, 2021 5:35p
P/E Ratio
35.53
Dividend Yield
0.90%
Market Cap
€336.18 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201058228/delayed
FR : France: Euronext Paris
667.00
+5.50 +0.83%
Volume: 3,215
Oct. 22, 2021 5:35p
P/E Ratio
30.91
Dividend Yield
1.05%
Market Cap
€120.33 billion
Rev. per Employee
€296,726
loading...
/zigman2/quotes/205386705/delayed
UK : U.K.: London
1,896.00 p
+22.00 +1.17%
Volume: 1.39M
Oct. 22, 2021 4:35p
P/E Ratio
20.44
Dividend Yield
2.24%
Market Cap
£7.66 billion
Rev. per Employee
£242,364
loading...
/zigman2/quotes/203108786/delayed
US : U.S.: OTC
$ 26.20
+0.21 +0.81%
Volume: 26,504
Oct. 22, 2021 3:59p
P/E Ratio
21.12
Dividend Yield
2.14%
Market Cap
$10.55 billion
Rev. per Employee
$316,494
loading...
/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3797
-0.0025 -0.1809%
Volume: 0.0000
Oct. 22, 2021 4:59p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,204.55
+14.25 +0.20%
Volume: 464,760
Oct. 22, 2021 4:57p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,733.69
+47.52 +0.71%
Volume: 65,949
Oct. 22, 2021 6:05p
loading...
/zigman2/quotes/206928357/delayed
FR : France: Euronext Paris
85.11
+1.16 +1.38%
Volume: 1.66M
Oct. 22, 2021 5:39p
P/E Ratio
18.48
Dividend Yield
3.76%
Market Cap
€106.83 billion
Rev. per Employee
€362,542
loading...
/zigman2/quotes/203606582/composite
US : U.S.: NYSE
$ 72.11
-0.13 -0.18%
Volume: 1.21M
Oct. 22, 2021 4:02p
P/E Ratio
7.22
Dividend Yield
1.66%
Market Cap
$37.72 billion
Rev. per Employee
$599,912
loading...
/zigman2/quotes/208108397/composite
US : U.S.: NYSE
$ 56.72
+0.79 +1.41%
Volume: 3.45M
Oct. 22, 2021 4:00p
P/E Ratio
13.00
Dividend Yield
10.61%
Market Cap
$139.62 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201448516/delayed
AU : Australia: Sydney
$ 37.65
-0.83 -2.16%
Volume: 10.87M
Oct. 22, 2021 4:10p
P/E Ratio
12.73
Dividend Yield
10.69%
Market Cap
$186.44 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203048482/delayed
UK : U.K.: London
8,996.00 p
+133.00 +1.50%
Volume: 1.19M
Oct. 22, 2021 4:35p
P/E Ratio
42.38
Dividend Yield
2.25%
Market Cap
£139.36 billion
Rev. per Employee
£282,763
loading...
/zigman2/quotes/200304487/composite
US : U.S.: Nasdaq
$ 61.79
+0.57 +0.93%
Volume: 4.00M
Oct. 22, 2021 4:00p
P/E Ratio
43.13
Dividend Yield
2.22%
Market Cap
$191.93 billion
Rev. per Employee
$362,602
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Carla Mozée is a reporter for MarketWatch, based in London. Follow her on Twitter @MWMozee. Victor Reklaitis is a London-based markets writer for MarketWatch. Follow him on Twitter @VicRek.

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