By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- European stocks ended higher on Friday
after the previous session's selloff, with retailer Next PLC
leading gainers on the Stoxx 600 index after it raised its profit
forecast.
The Stoxx Europe 600 index rose 0.6% to end at 327.64 on Friday,
leaving it nearly unchanged for the week.
The index fell 0.7% on Thursday as investors returned from the
New Year's break and got into a selling mood, partly using
disappointing Chinese data as an excuse.
Shares of Stoxx 600 heavyweight HSBC Holdings PLC (HSBC) fell
0.5% in London. HSBC also fell overnight in Asia as it's a major
component of the Hang Seng Index , which fell 1.8% after data
revealed slowing activity in China's services sector in December.
The U.K.'s FTSE 100 index rose 0.2% to 6,730.67.
On Thursday, data showed weaker-than-expected Chinese
manufacturing activity, which left investors fretting in Europe and
across the globe. However, analysts said markets remain thin after
the holidays and many traders were concerned about a pullback in
the new year.
"Speaking to clients, the general feeling is that after the
first trading of the year retreat, European markets are reversing
some of that weakness, which was driven by profit-taking rather
than fundamentals," wrote Ishaq Siddiqi, market strategist at ETX
Capital, in emailed comments.
"China data hasn't helped, but the feeling in markets regarding
the U.K., euro zone and U.S. economy is relatively sanguine," he
said.
Next PLC was the top riser in the Stoxx 600, jumping 10% in
London trade after the clothing retailer raised its full-year
pretax profit forecast and announced a special dividend of 50 pence
per share. Next said strong online deliveries lifted sales during
the Christmas period.
Earlier this week, Debenhams PLC , a U.K. department-store
chain, issued a profit warning due to heavy promotional activity by
competitors in the run-up to the holidays. But shares of Debenhams
rose nearly 4% on Friday.
Portugal Telecom was also one of the top gainers in the Stoxx
600, rallying 9.1%.
Also supporting the Stoxx 600 was a 1.4% gain for drug maker
Sanofi SA (SNY), which helped lift the French CAC 40 index by 0.5%
to 4,247.65.
The German DAX 30 index rose 0.4% to 9,435.15.
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