European Markets Turn In Another Lackluster Performance

(RTTNews) - The European markets remained stuck in a sideways pattern again Friday, after a similarly lackluster performance the previous day. Markets ended Friday's session with mixed results, but were little changed overall. Economic data was sparse at the end of the trading week, leaving investors to focus on corporate financial results.

Bank of England Governor Mark Carney diminished hopes for a U.K. rate hike in May, saying that Brexit uncertainty acts as a dampener to a pickup in business investment.

"Prepare for a few interest rate rises over the next few years," Carney told BBC.

The biggest set of economic decisions over the course of the next few years would depend on the Brexit negotiations and upon the deal that the U.K. reach with the EU.

"And then we will adjust to the impact of those decisions in order to keep the economy on a stable path," he added.

Speaking on the sidelines of the International Monetary Fund meetings in Washington, Carney, meanwhile, acknowledged that an interest rate hike is "likely" this year.

Carney acknowledged that the recent data has been soft, and the Monetary Policy Committee "will sit down calmly and look at it all in the round" at the meeting next month.

The pan-European Stoxx Europe 600 index weakened by 0.05 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 0.21 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.02 percent.

The DAX of Germany dropped 0.21 percent, but the CAC 40 of France rose 0.39 percent. The FTSE 100 of the U.K. gained 0.54 percent, but the SMI of Switzerland finished lower by 0.29 percent.

In London, Reckitt Benckiser dropped 3.01 percent after the company's first-quarter like-for-like sales growth, at 2 percent, fell short of expectations.

Shire fell 3.86 percent following an announcement from Allergan PLC that there are no plans to make a bid for the Dublin-based drug maker.

Ericsson surged 17.49 percent in Stockholm after its operating loss in the first quarter narrowed to 0.3 billion kronor from 11.3 billion kronor, supported by improved gross margin and reduced operating expenses, partly offset by lower sales.

Telecom company Telia jumped 8.60 percent after it reported that its first-quarter net income from continuing operations declined to 2.35 billion Swedish kronor from 2.46 billion kronor in the same quarter last year.

Germany's producer price inflation accelerated for the first time in six months in March, though marginally, figures from Destatis showed Friday. Producer price inflation rose to 1.9 percent in March from February's 14-month low of 1.8 percent. The rate was forecast to increase to 2.0 percent.

Spain's foreign trade deficit decreased in February from a year ago, as exports grew faster than imports, preliminary figures from the Economy Ministry showed Friday. The trade deficit narrowed to EUR 2.2 billion in February from EUR 2.6 billion in the corresponding month last year.