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Jan. 13, 2017, 12:22 p.m. EST

Fiat rebound helps send European stocks higher into the weekend

Drugmakers recover after Trump-related drop

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By Sara Sjolin and Victor Reklaitis, MarketWatch


Getty Images
The Fiat Chrysler plant in Warren, Mich.

European stock markets shook off recent weakness and marched higher on Friday, with Fiat Chrysler setting an upbeat tone for car makers just a day after being accused of cheating on emissions tests.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.32%  advanced 1% to close at 365.94, easily erasing a 0.7% loss from Thursday. For the week, the pan-European benchmark scored a gain of 0.1%.

Fiat drives higher: Thursday’s session was weighed by car makers tumbling late in the day after the U.S. Environmental Protection Agency accused Fiat Chrysler Automobiles NV   of using software to cheat on diesel emissions testing.

The Italian-American car maker’s stock ended Thursday 16% lower in Europe and down 10% in the U.S. On Friday, the shares rebounded with a 4.6% jump in European trade, though the U.S. listing was trading lower. Shares of Exor NV /zigman2/quotes/205060095/delayed IT:EXO +0.57%  , a major Fiat shareholder, climbed 6.7%.

Analysts at Citigroup said the market “will immediately draw parallels” to Volkswagen AG /zigman2/quotes/204309985/delayed DE:VOW3 -1.97%   . But they added that it is “worth noting that at this stage the [EPA] has not declared the software a defeat device and unlike VW, FCA is denying the allegation.” VW earlier this week pleaded guilty in U.S. emissions scam probe and agreed to pay $4.3 billion in penalties.

Click to Play

Mercedes and Lexus: Two luxury debuts in Detroit

Mercedes showcased what it calls "the first car without lines" with the new E400 Coupe, while Lexus introduced the LS500 with an exotic daylight opening.

Fiat Chief Executive Officer Sergio Marchionne called the allegation “unadulterated hogwash,” according to media reports .

“Notwithstanding the differences, if we were to suggest the cost in terms of fines/compensation/buy-backs were potentially on the same level as VW, then we estimate the potential cost to FCA could be in excess of €3.3 billion,” the Citi analysts said.

Other car makers rose on Friday, with shares of Ferrari NV /zigman2/quotes/200586103/delayed IT:RACE -0.70%  up 2.7% and Volkswagen up 1.5%.

Drugmakers on the mend: Pharmaceutical companies also rebounded on Friday, having fallen after U.S. President-elect Donald Trump’s press conference on Wednesday. Trump hinted at forthcoming legislation that could erode the sector’s profitability.

Read: Nigam Arora on what pharma investors ought to do after Trump fires a salvo

Shares of Novo Nordisk AS /zigman2/quotes/207193277/delayed DK:NOVO.B -0.49%   /zigman2/quotes/203484366/composite NVO -0.10%  gained 2.1%, while Hikma Pharmaceuticals PLC /zigman2/quotes/204872832/delayed UK:HIK +0.29% and Sanofi SA /zigman2/quotes/206928357/delayed FR:SAN +2.18%   /zigman2/quotes/201967021/composite SNY +2.06%  both gained 2%.

Indexes: The U.K.’s FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +0.08% rose 0.6% to finish at 7,337.81 for a 12th consecutive record close.

Germany’s DAX 30 index /zigman2/quotes/210597999/delayed DX:DAX +0.05%  added 0.9% to end at 11,629.18, while France’s CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 +0.54%  jumped 1.2% to 4,922.49.

/zigman2/quotes/210599654/delayed
XX : STOXX
470.07
+1.49 +0.32%
Volume: 0.00
Oct. 20, 2021 11:03p
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/zigman2/quotes/205060095/delayed
IT : Italy: Milan
74.70
+0.42 +0.57%
Volume: 218,826
Oct. 20, 2021 5:35p
P/E Ratio
N/A
Dividend Yield
0.58%
Market Cap
€17.16 billion
Rev. per Employee
€4.64M
loading...
/zigman2/quotes/204309985/delayed
DE : Germany: Frankfurt
186.68
-3.76 -1.97%
Volume: 3,879
Oct. 20, 2021 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€354,929
loading...
/zigman2/quotes/200586103/delayed
IT : Italy: Milan
192.05
-1.35 -0.70%
Volume: 272,756
Oct. 20, 2021 5:35p
P/E Ratio
42.16
Dividend Yield
0.45%
Market Cap
€47.93 billion
Rev. per Employee
€759,392
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/zigman2/quotes/207193277/delayed
DK : Denmark: OMX
kr. 666.70
-3.30 -0.49%
Volume: 1.51M
Oct. 20, 2021 4:59p
P/E Ratio
34.86
Dividend Yield
1.40%
Market Cap
kr.1522.28 billion
Rev. per Employee
kr.2.80M
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/zigman2/quotes/203484366/composite
US : U.S.: NYSE
$ 104.55
-0.10 -0.10%
Volume: 638,720
Oct. 20, 2021 4:00p
P/E Ratio
34.06
Dividend Yield
1.00%
Market Cap
$238.24 billion
Rev. per Employee
$428,322
loading...
/zigman2/quotes/204872832/delayed
UK : U.K.: London
2,420.00 p
+7.00 +0.29%
Volume: 185,838
Oct. 20, 2021 4:35p
P/E Ratio
16.25
Dividend Yield
1.56%
Market Cap
£5.58 billion
Rev. per Employee
£212,273
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/zigman2/quotes/206928357/delayed
FR : France: Euronext Paris
84.43
+1.80 +2.18%
Volume: 1.92M
Oct. 20, 2021 5:35p
P/E Ratio
18.33
Dividend Yield
3.79%
Market Cap
€103.72 billion
Rev. per Employee
€362,542
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/zigman2/quotes/201967021/composite
US : U.S.: Nasdaq
$ 49.05
+0.99 +2.06%
Volume: 3.03M
Oct. 20, 2021 4:00p
P/E Ratio
17.86
Dividend Yield
2.79%
Market Cap
$120.78 billion
Rev. per Employee
$413,288
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,223.10
+5.57 +0.08%
Volume: 551,713
Oct. 20, 2021 4:56p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,522.92
+7.09 +0.05%
Volume: 54,739
Oct. 20, 2021 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,705.61
+35.76 +0.54%
Volume: 65,963
Oct. 20, 2021 6:05p
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Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin. Victor Reklaitis is a London-based markets writer for MarketWatch. Follow him on Twitter @VicRek.

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