UKX FTSE 100 Index

By Carla Mozee, MarketWatch

Ericsson shares surge

European stocks edged down Friday, as losses in the consumer-goods sector contributed to pulling the regional market away from a seven-week high.

But U.K. stocks fared better, helped by a drop in the pound's value after Bank of England Governor Mark Carney threw into doubt the possibility of a rate hike in May.

How indexes are moving

The Stoxx Europe 600 index fell 0.3% to 380.71, led by losses for the oil and gas and consumer goods. But the telecom and financial sectors were rising. The benchmark on Thursday rose 0.2% and closed at its highest since Feb. 27, according to FactSet data. A loss Friday would be the first after three straight wins.

For the week, the Stoxx 600 was on course to increase by 0.5%, and that would be a fourth consecutive weekly advance.

In Frankfurt, the DAX 30 index was down 0.1% to 12,553.39, but was looking at a weekly rise of 0.9%. France's CAC 40 index slipped 0.1% to 5,386.39, but is looking at a 1.8% move higher for the week.

But the U.K.'s FTSE 100 index outperformed its rivals, adding 0.3% to 7,451.09, aided by the drop in the pound's value. (http://www.marketwatch.com/story/uk-stocks-climb-to-10-week-high-as-metals-prices-soar-2018-04-19) It's on course for a weekly gain of 1.4%.

Check out:Pound crumbles after BOE's Carney casts doubt over May rate hike (http://www.marketwatch.com/story/pound-crumbles-after-boes-carney-casts-doubt-over-may-rate-hike-2018-04-20)

The euro changed hands at $1.2326, down from $1.2345 late Thursday in New York. Against the pound, the shared currency rose to GBP0.8778 from GBP0.8766.

What's driving the market

A new wave of earnings reports rolled in for assessment on Friday. Shares in the consumer-goods sector continued to struggle on Friday, with Reckitt Benckiser Group PLC under pressure after a sales gauge for the maker of Lysol disinfectant and other consumer brands fell short of expectations (http://www.marketwatch.com/story/reckitt-benckiser-sales-rise-backs-yearly-view-2018-04-20).

That sector lost ground on Thursday, as concerns about weak pricing power hurt shares of Dove soap maker Unilever PLC (ULVR.LN) , and tobacco stocks fell after Philip Morris International Inc. (PM) shares plunged in the U.S. on a decline in cigarette sales volume.

But U.K. stocks moved higher Friday as a whole as the pound fell against major rivals. Sterling dropped after Carney said he didn't "want to get too focused on the precise timing" of an interest-rate hike, citing uncertainty over Brexit and recent disappointing retail and inflation data. The market had been pricing in a rate increase at the BOE's meeting on May 10.

A weaker pound can help lift the British blue-chip index, as its multinational companies generate most of their sales in foreign currencies.

What strategists are saying

"The rather lackluster figures [for Reckitt Benckiser] highlight the struggles that consumer goods companies are facing as increased competition from drug store chains and e-tailers such as Amazon often means price increases are out of the question," said Fiona Cincotta, senior market analyst at City Index, in a note.

Stocks in focus

Reckitt Benckiser shares (RB.LN) dropped 5.9% after the first-quarter like-for-like sales growth at the consumer products maker came in at 2%, falling short of expectations of 2.6% growth.

Ericsson AB shares (ERIC-B.SK) (ERIC) surged 15%, on course for their best session since October 2008, after the Swedish telecommunications-equipment maker posted a narrower first-quarter net loss (http://www.marketwatch.com/story/ericsson-losses-narrow-amid-turnaround-effort-2018-04-20) of SEK837 million.

ASM International NV (ASMIY) sank 9.1%. The Dutch semiconductor firm said first-quarter sales of EUR159 million "were at the lower end of our guidance while order intake was at the higher end of our guidance."

Telia Co. AB (TELIA.SK) jumped 9.1% after the Nordic telecommunications operator raised its cash-flow guidance and launched a 15 billion Swedish kronor ($1.79 billion) share buyback program. (http://www.marketwatch.com/story/telia-swings-to-loss-launches-18b-share-buyback-2018-04-20)

Shire PLC (SHPG) (SHPG) fell 4.5% after Allergan PLC (AGN) late Thursday said it doesn't plan to make a bid for the Dublin-based drug maker (http://www.marketwatch.com/story/blink-and-you-missed-it-allergan-doesnt-plan-to-make-a-shire-bid-2018-04-19).

(END) Dow Jones Newswires

April 20, 2018 06:10 ET (10:10 GMT)

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