On Friday, European stock markets rose as investors digested corporate news and the European Central Bank’s monetary policy decision before the U.S. jobs report. Germany’s DAX index rose 0.3%, the U.K.’s FTSE 100 climbed 0.4%, and France’s CAC 40 gained 0.4%. The earnings season continued in Europe, with Adidas’s stock rising more than 7% after the German sportswear giant reported better-than-expected first-quarter numbers. IAG stock rose 4% after the British Airways owner raised its 2023 profit forecast. Air France KLM reported better-than-expected Q1 revenue and strong cash flow, but its stock dropped 3.6% after the airline decided against providing a full-year profit forecast. CaixaBank’s stock rose 1.8% after the Spanish lender reported a significant increase in net profit in Q1 from a year ago. However, InterContinental Hotels Group’s stock fell 2.7% after the company’s CEO Keith Barr announced he would step down from his role next month.
Sentiment was buoyed by strong results from Apple after the Wall Street close Thursday. Investors are still digesting the implications of the European Central Bank slowing the pace of its policy tightening on Thursday. While ECB President Christine Lagarde indicated that the central bank is not done with rate hikes yet, the bank also noted that previous increases were being “transmitted forcefully” into financing and monetary conditions.
Oil prices rose on Friday, but remained on course for a third straight weekly loss as concerns about slowing growth, likely exacerbated by the turmoil in the U.S. banking system, hit crude demand. U.S. crude futures traded 1.4% higher at $69.55 a barrel, while the Brent contract climbed 1.5% to $73.58. Additionally, gold futures edged 0.4% lower to $2,048.35/oz, while the EUR/USD traded 0.1% higher at 1.1025. The major economic release for Friday was the U.S. monthly jobs report, which was expected to show that nonfarm payrolls rose 180,000 in April.