By Carla Mozee and Sara Sjolin, MarketWatch

Ericsson shares surge

European stocks ended a volatile session marginally lower on 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 0.03% to end at 381.84, slipping from its highest close since Feb. 27 logged on Thursday.

For the week, the Stoxx 600 bagged a 0.7% gain, its fourth consecutive weekly advance.

In Frankfurt, the DAX 30 index ended down 0.2% to 12,540.50, but rose 0.8% for the week. France's CAC 40 index ended 0.4% higher at 5,412.83, extending its weekly win to 1.8%.

But the U.K.'s FTSE 100 index outperformed its rivals, adding 0.5% to 7,368.17, 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 rose 1.4% for the week.

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 $1.2285, down from $1.2345 late Thursday in New York. Against the pound, the shared currency rose to GBP0.8755 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.

Read:Here's why the pound got whipped this week -- and why it may bounce back to $1.44 (http://www.marketwatch.com/story/heres-why-the-pound-got-whipped-this-week-and-why-it-may-bounce-back-to-144-2018-04-20)

What strategists are saying

"The rather lackluster figures [for Reckitt Benckiser] highlight the struggles that consumer goods companies are facing as increased competition from drugstore 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 2.8% 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 18%, scoring their best session since 2002, 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 8.4%. 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 8.6% 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 3.8% after Allergan PLC (AGN) late Thursday said it doesn't plan to make a bid for the Dublin-based drugmaker (http://www.marketwatch.com/story/blink-and-you-missed-it-allergan-doesnt-plan-to-make-a-shire-bid-2018-04-19). Meanwhile, Japan's Takeda Pharmaceutical Co. said Friday it had sweetened its offer to buy Shire (http://www.marketwatch.com/story/takeda-sweetens-bid-for-drug-rival-shire-2018-04-20), just a day after the British drugmaker rejected a bid from the rival pharma company.

 

(END) Dow Jones Newswires

April 20, 2018 12:24 ET (16:24 GMT)

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