Royal Bank of Scotland Group, HSBC Holdings report results
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — European stock markets were trading mixed Friday, as investors looked to cash in on strong gains seen in the prior session and caution dominating ahead of U.S. jobs data due later.
The Stoxx Europe 600 index (ST:STOXX600 270.23, -0.60, -0.22%) fell 0.1% to 270.53 in morning trading. It reached its highest level since April on Thursday, along with its biggest one-day point and percentage gain since Sept. 1.
Markets were showing signs of strain a day after a global stock market rally inspired by a $600 billion bond-buying program from the U.S. Federal Reserve.
The focus Friday will shift to nonfarm payrolls for October due at 8:30 a.m. Eastern time. Analysts said any disappointment with the data could trigger selling of stocks. U.S. futures were pointing slightly lower.
“Quite how long the gains can be sustained for remains to be seen and the risk of some opportunistic profit-taking ahead of the weekend break shouldn’t be overlooked either,” said Ben Potter, market strategist at IG Markets.
European banks were in focus on Friday, with shares of Royal Bank of Scotland Group PLC (RBS 15.42, +0.68, +4.61%) (UK:RBS 46.40, -0.74, -1.57%) falling 1.2%, reversing earlier gains. The bank narrowed its third-quarter loss as impairment losses on bad debts shrank.
HSBC Holdings PLC (HBC 56.92, +3.01, +5.58%) (UK:HSBA 682.30, -12.80, -1.84%) shares slipped 1%. The bank said third-quarter pretax profit was ahead of the year-earlier result, helped by a fall in loan impairments.
Shares of medical device maker Smith & Nephew PLC (UK:SN. 587.50, +29.00, +5.19%) jumped 4.1% as it reported better-than-expected third-quarter results.
Shares of Rolls-Royce Group PLC (UK:RR. 600.50, -21.00, -3.38%) continued to get battered by the market, losing another 2% over fallout from the mid-air failure of one of its engines on a Qantas Airways flight.
The London FTSE 100 index (UK:UKX 5,851, -11.59, -0.20%) rose 0.1% to 5,869.99, after setting a new 2010 closing high and new 52-week high in the prior session.
In France, the CAC-40 index (FR:PX1 3,910, -6.61, -0.17%) edged up 0.1% to 3,918.84, with shares of building-materials group Lafarge SA (FR:LG 44.30, -0.94, -2.08%) off 1.2% after it reported a decline in quarterly profit.
On the upside, shares of Renault SA (FR:RNO 40.10, +1.22, +3.05%) rose 2.7%.
The German DAX 30 index (DX:DAX 6,732, -2.64, -0.04%) rose 0.04% to 6,738.69, with shares of Deutsche Bank AG (DB 59.40, +1.71, +2.96%) (DE:DBK 41.70, +0.22, +0.52%) up 1.4%.
