Europe gives way but marks the best week since June. Gold, dollar and oil in red – Markets in a minute

Europe retires but improves weekly earnings since June

European equity markets gave way almost broadly this Friday, due to the anticipated US election results, but marked the best week since June. Yesterday they were on track for the best weekly gain since April, but today’s lows have slowed that advance.

The Stoxx Europe 600 benchmark closed 0.2% lower, thus reducing its weekly rise to 7%.

The automotive sector was one of those that most penalized today’s session in the Old Continent, with a drop of 1.7%, after the European Association of Automobile Manufacturers (ACEA) revised down the forecasts for car sales in the European Union. The ACEA estimates a 25% drop in car sales in the EU this year due to the crisis the sector faces as a result of the covid-19 pandemic.

A French industrial lobby also penalized this sector, which warned of a decline in car orders.

Natixis, on the other hand, weighed on the banking sector (which fell 1%, in aggregate), as it seeks to end its partnership with controversial asset manager H2O.

On the profit side, the mining sector stands out (+ 2%), with the devaluation of the dollar driving metal prices. The insurance sector also advanced, with an increase of 0.2%, given the optimism of investors after reporting the results of some companies in the sector, which exceeded estimates.

Of the major Western European indices, the German Dax fell 0.7%, the Spanish Ibex 35 fell 0.8%, the French CAC 40 fell 0.5%, and the Italian FTSEMIB fell by 0.3%.

The exceptions to the downside in Western Europe were the UK’s FTSE 100 (which jumped 0.10%) and the Dutch AEX (which added 0.2%).

“After a mixed opening, the European benchmarks consolidated this Friday, following the trend also seen in the Asian markets. After four days of rising, investors have chosen to hold back their investments in the last trading session of the week”, ActivTrades points out in its daily report on Friday.

“The votes are still being counted in some of the swing states, but President Trump has already come to contest the results. Meanwhile, Democratic candidate Joe Biden is moving closer and closer to the White House. However, the Senate will continue. . be controlled by the Republicans. This troubled victory scenario, already anticipated by many investors since October, is not really affecting the markets, “add analysts of that broker.