European stocks eke out weekly gain as oil, yields ease; SpaceX spectrum deal hits telecoms
TMUS•The STOXX 600 rose 1% on Friday, erasing its weekly loss as oil prices and bond yields eased. Telecom stocks fell after SpaceX agreed to acquire a nationwide U.S. spectrum portfolio, while European autos gained 1.5% after an EU-China deal on vehicle exports.
1. Stocks recover as oil eases
European stocks rose on Friday as oil prices and bond yields eased. The STOXX 600 closed 1% higher, wiping out its weekly fall, after ending Thursday at a nearly four-month low. Oil prices dipped more than 1% after U.S. President Donald Trump said the United States would not attack Iran before next month’s midterm elections.
2. Autos gain on EU-China deal
The European Union and China agreed to halve Chinese exports of hybrid and plug-in hybrid vehicles to the EU, improve EU access to China’s market and ease Chinese licensing of rare-earth exports, European Trade Commissioner Maros Sefcovic said. European auto shares rose 1.5%, their sharpest daily gain in more than three weeks.
3. Telecoms slide; earnings ahead
The STOXX 600 telecom index fell 2.9% to an eight-month low after SpaceX agreed to acquire a nationwide low-band spectrum portfolio in the United States. Deutsche Telekom dropped 7.9%, while its 54%-owned T-Mobile US fell 12% in U.S. afternoon trading; Vodafone and Telefonica each dipped more than 4.5%, and Orange fell 2.5%. Analysts expect STOXX 600 companies to post third-quarter profit growth of 21% year over year, with energy and basic materials firms seen providing the biggest boost.
