European equities closed trading on Friday, at the end of trading week, with an initial boost supported by the UK government’s withdrawal from tax cuts, but the impact of this payment waned in light of continued uncertainty over its financial position.
The pan-European Stoxx 600 index closed 0.6 per cent higher, up for the second consecutive session, but strayed far from the high levels recorded in the session shortly after British Prime Minister Liz Truss announced the cancellation of some provisions of the government’s financial program.
Terrace fired Finance Minister Kwasi Quarting and said Britain would push ahead with plans to raise corporate taxes.
The pound versus the dollar fell 1.2 percent, close to the lowest levels of the session, while UK two-year bond yields fell in recent trading after reversing gains prior to the Terrace announcement.
The UK’s FTSE 100 major equities index also fell from its highest level during the session and closed 0.1% higher.
The pan-European Stoxx 600 index has fallen 19.8% so far this year, with markets worried about massive interest rate hikes around the world pushing the economy to the brink of recession. An energy crisis exacerbated by the Russian-Ukrainian conflict has also heightened concerns about an economic slowdown in Europe.
However, Friday’s gains helped the Stoxx Index write off some of the losses it suffered in the first three days of the week.
Most of the sectors listed on the Stoxx 600 grew, driven by real estate and utilities equities.
On the corporate front, Temenos plummeted 19% after the Swiss banking software group cut its target profit estimates for 2022.
(Reuters)
