European stocks struggled for traction on Friday, taking a cue from a weaker close on Wall Street sparked by reports that wealthy Americas were facing a hike in capital-gains taxes.
The Stoxx Europe 600 index
was slightly lower at 439.60, following the third-highest close in history and a gain of 0.7% on Thursday. On a weekly basis, the index is thus far down 0.7%, which would mark the first weekly fall since late February.
slipped 0.2%, the French CAC 40 index
rose 0.1% and the FTSE 100 index
dipped 0.2%. The pound
was up about 0.3% against the U.S. dollar at $1.3882.
U.S. stock futures
inched higher, hinting at a bounce for equities later. Thursday’s session left the Dow Jones Industrial Average with a 321-point loss, following a report on Bloomberg News that President Joe Biden would propose nearly doubling the capital-gain taxes rate for wealthy Americans. The S&P 500
and Nasdaq Composite
lost 0.9% each.
There were encouraging signs in fresh European economic data. The IHS Markit eurozone purchasing managers index (PMI) composite output index rose to a nine-month high of 53.7, with the flash eurozone manufacturing output PMI at a record high and the services PMI at an eight-month high.
“In a month during which virus containment measures were tightened in the face of further waves of infections, the eurozone economy showed encouraging strength,” said Chris Williamson, chief business economist at IHS Markit.
The auto sector was leading European stock gains, with shares of Daimler
up 1.6%. The German luxury car maker increased the margin targets for its Mercedes-Benz and Mobility divisions for the year, after profit and revenue increased in the first quarter.
reported sales rose slightly in its full fiscal year, adjusted for currency effects, as strong cognac sales lifted fourth-quarter revenue. Shares of the French drinks group slipped 0.4%. Shares of rival drinks maker Diageo
The banking and pharmaceutical sectors were under pressure, with shares of AstraZeneca
down over 1%. Stock in major oil companies were also weighing on the index, with shares of BP
and Royal Dutch Shell
down 1.8% and 0.6%, respectively.