European equities moved modestly higher on Friday, although the region’s major markets remained on course to finish the week lower as investors weighed elevated oil prices, volatility in government bonds and fresh economic data.
Germany’s DAX gained 0.3%, while the UK’s FTSE 100 and France’s CAC 40 both advanced 0.2%.
Despite the positive session, concerns over energy costs and instability in fixed-income markets continued to weigh on the broader weekly performance.
UK retail sales fall in July
Sterling weakened slightly against the euro following the release of UK retail sales figures showing a 0.5% month-on-month decline in July.
The decrease reversed a revised 0.7% increase in June and was slightly worse than the 0.4% contraction economists had forecast.
On an annual basis, retail sales growth slowed considerably to 1.6% from 3.8% in June, adding to concerns about the strength of household spending.
Hunting falls after cutting profit outlook
Hunting Plc (LSE:HTG) shares dropped sharply in London after the British energy services company lowered its annual core profit forecast.
The downgrade put the stock among the notable decliners during Friday’s European session as investors reassessed the company’s near-term earnings outlook.
Elsewhere, Banca Generali (BIT:BGN) moved lower after Monte dei Paschi di Siena (BIT:BMPS) launched simultaneous all-share takeover proposals for the Italian wealth manager and Banco BPM (BIT:BAMI).
German ticketing company CTS Eventim (TG:EVD) also declined after publishing mixed second-quarter results.
Fresnillo and mining shares gain as metals rally
Mining stocks provided support to European markets as precious and industrial metals prices strengthened.
Fresnillo (LSE:FRES) jumped after gold climbed above $4,550 an ounce, supported by a weaker US dollar and expectations that longer-term Treasury yields could remain contained.
Copper producers also benefited from the softer dollar, with Antofagasta (LSE:ANTO) and Glencore (LSE:GLEN) recording notable gains as copper prices moved higher.
The strength of mining shares helped offset weakness elsewhere in the market, although European equities remained positioned for a weekly decline amid persistent concerns surrounding oil prices and bond-market volatility.
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