European Markets Close Modestly Higher

European markets closed modestly higher on Friday, due largely on some bargain hunting after recent losses, but most of the markets in the region still recorded their biggest weekly decline in about six months.

Lingering worries about the pace of economic recovery due to surging coronavirus cases of the Delta variant, the likelihood of tighter monetary policy from the Federal Reserve, the tech crackdown in China and geopolitical tensions following the developments in Afghanistan all weighed on sentiment.

A rout in Chinese technology giants deepened after Chinese authorities passed a major data protection law, along the lines of Europe’s Global Data Protection Regulation, making it harder and costlier for tech firms in China to access and use consumer information.

The law, one of the world’s toughest on personal data security, places legal restrictions on how personal data can be collected, used and managed after it comes into effect on November 1.

Travel-related stocks tumbled on fears the spread of the Delta variant could lead to more travel restrictions. Shares of miners and oil companies remained largely subdued.

German airline Lufthansa tumbled 3 percent and Franco-Dutch airline holding company Air France KLM lost 2.2 percent.

The pan European Stoxx 600 moved up 0.33% today. The U.K.’s FTSE 100 climbed 0.41%, Germany’s DAX gained 0.27% and France’s CAC 40 moved up 0.31%. Switzerland’s SMI edged up 0.1%. DAX shed about 1.1% in the week, while the FTSE 100 and CAC 40 lost 1.8% and 3.9%, respectively.

Among other markets in Europe, Denmark, Finland, Iceland, Ireland, Netherlands, Portugal, Spain, Sweden and Turkey closed higher.

Poland and Russia drifted lower, while Austria, Belgium, Czech Republic, Greece and Norway ended flat.

In the UK market, JD Sports Fashion, Imperial Brands, B&M, ICP, Sainsbury (J), Spirax-Sarco Engineering, Ocado Group, British American Tobacco and Kingfisher gained 1.5 to 3%.

Supermarket Morrisons surged 4.2% after it agreed a takeover offer worth 7.0 billion pounds ($9.54 billion).

Anglo American Plc, Phoenix Group Holdings, Diageo, Pershing Square Holdings, Rolls-Royce Holdings and Ashtead Group closed weak.

In the French market, Vivendi, STMicroElectronics, LVMH, Hermes International and LOreal gained 1 to 1.6%, while Faurecia, Valeo, Renault, WorldLine, Air France-KLM, Schneider Electric and Pernod Ricard lost 1 to 3%.

In Germany, BASF, Fresenius, Covestro, Daimler, BMW, HeidelbergCement, Deutsche Bank, Adidas, Thyssenkrupp, Siemens, and MTU Aero Engines shed 2 to 4%.

Swedish real estate web portal Hemnet soared nearly 28% after reporting a jump in quarterly sales and profits.

In economic releases, German producer prices grew 10.4% yearly in July, after rising 8.5% in June, Destatis reported. Economists had forecast an increase of 9.2%. This was the fastest rise since January 1975, when prices grew sharply amid first oil crisis.

On a monthly basis, overall producer price inflation rose to 1.9% from 1.3% in June. Economists had forecast a rise of 0.8%.

Separate data showed a surprise fall in U.K. retail sales last month. Sales volumes fell by 2.5% from June, marking the biggest drop since January when Britain returned to lockdown.