European stock markets rose on Friday after a volatile week in which company earnings and growth worries hit stocks, although the euro sank after weaker-than-expected business surveys from Germany and the euro zone.
Italian stocks .FTMIB led the bounce in equities, rallying hard after the country’s bond yields fell after a press report that EU Affairs Minister Paolo Savona is considering resigning over the government’s decision to challenge European Union budget rules.
The pan-European STOXX 600 index was up 0.1 percent. Europe’s performance on Friday stood in contrast to Asia, where steep losses in Chinese markets hit stocks amid lingering trade war tensions and worries about global growth. [.EU]
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2 percent as Chinese blue-chips .CSI300 tumbled 2 percent and the Shanghai Composite index .SSEC lost 2.2 percent.
Not all was cheerful in Europe though – surveys of German and euro zone purchasing managers came in weaker than expected, pushing the euro to its lowest in three days and setting up the single currency for its worst week in a month.
The disappointing readings will likely be of concern to policymakers at the European Central Bank, who are expected to draw a line under their 2.6 trillion euro asset purchase programme at the end of the year.
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