Europe markets lower as investors tread carefully
European markets pared early gains to trade lower on Friday as investors exercised caution after a roller-coaster week in global equity markets.
The pan-European STOXX 600 (STOXX: .STOXX) was trading 0.5 percent lower in the afternoon, despite opening over 0.1 percent up.
London's FTSE 100 (FTSE International: .FTSE) was 0.1 percent lower and the French CAC (Euronext Paris: .FCHI) fell 0.2 percent, however, the German DAX (XETRA: .GDAXI) slumped, down 0.7 percent.
U.S. stocks opened lower on Friday in the final day of a volatile trading week as investors eyed data and Federal Reserve speakers.
Asian markets however, closed in positive territory, with the Shanghai Composite (Shanghai Stock Exchange: .SSEC) closing 4.9 percent higher following news the People's Bank of China had purchased blue chip stocks to prop up the market.
The mixed picture in Europe follows strong closes in the U.S., where all three major indexes closed more than 2 percent higher and the Nasdaq Composite (NASDAQ: .IXIC) and Dow Jones (Dow Jones Global Indexes: .DJI) industrial Average emerged from correction territory.
On the earnings front, French luxury goods maker Hermes (Euronext Paris: RMS-FR), known for its Birkin bags, posted a 20 percent rise in first-half operating income, but shares were over 1.7 percent lower. This dragged other names in the space down with France's LVMH (Euronext Paris: MC-FR) and Italy's Luxottica (Milan Stock Exchange: LUX-IT) both in negative territory.
Seadrill's (Oslo Stock Exchange: SDRL-NO) shares were 3.7 percent higher after the company reported a 37 percent drop in second-quarter net profit and said it would delay the delivery of 10 offshore oil rigs and drillships for up to two years.
Swedish hygiene products firm SCA (Stockholmsborsen: SCA.B-SE) said it would split the group into two divisions sending shares in the company over 3.1 percent higher.
France's Bollore (Euronext Paris: BOL-FR) reported a 17 percent rise in first-half earnings. Shares in the firm were up over 1.3 percent.
The STOXX 600 oil and gas (STOXX: .SXEP) sector was one of the best performers after commodity prices rebounded on Thursday. U.S. crude surged 10.3 percent yesterday, marking its best day since March 2009 when it soared 11.1 percent.
Tullow Oil (London Stock Exchange: TLW-GB) was over 4.5 percent higher, with Petrofac (London Stock Exchange: PFC-GB) and Statoil (Oslo Stock Exchange: STL-NO) both in positive territory.
Stocks in the drinks space were also in negative territory after the companies received a round of downgrades from analysts.
Pernod Ricard (Euronext Paris: RI-FR) reported full-year 2014/2015 results on Thursday which saw it take an impairment charge on its Absolut vodka. Barclays and Credit Suisse were among a number of banks that cut their price target for the Pernod Ricard stock, sending shares in the firm up 0.6 percent.
A string of economic data has also been released today. The second reading of the U.K.'s second quarter gross domestic product (GDP) came in at 0.7 percent quarter-on-quarter, as expected. A monthly European Commission survey released Friday showed that businesses and households across the euro zone were more upbeat.
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