Major European and Asian stock markets diverged Friday in a quiet end to the week's trading dominated by earnings updates. London edged down as investors awaited the first budget of Britain's new Labour government on Wednesday, expected to include tax rises on businesses. In Asia, Shanghai and Hong Kong markets rose amid hopes of stronger growth in China following the country's recent moves to try and stimulate its stalling economy.
Crude futures climbed and the dollar was mixed versus main rivals heading into the weekend break. "Oil prices have shifted higher, with Brent crude heading towards $75 a barrel..
. as concerns about the Middle East stay in focus," noted Susannah Streeter, head of money and markets at stockbroker Hargreaves Lansdown. Tokyo's stock market closed down and the yen dipped against the dollar ahead of Japan's national elections Sunday.
Independent analyst Stephen Innes pointed to uncertainty over the vote and an upcoming Bank of Japan policy meeting as complicating the outlook for Japanese equities. "Between election jitters and BoJ chess moves, Tokyo markets are probably in for a busy opening on Monday." Focus this week has been on earnings as major companies worldwide report on their third-quarter performances.
In London around midday, shares in British bank NatWest jumped more than three percent after the lender posted a strong increase in profits, with income higher thanks to interest rates remaining elevated. Mercedes-Benz stock slipped nearly one pe.
