European Markets Extended Their Recent Winning Streak

(RTTNews) - The European markets ended Friday's session in the green, extending its winning streak to four sessions. After the sharp sell-off sparked by the U.K. decision to exit the European Union at the end of the prior week, the prospects for this week looked quite grim. However, the only negative session this week was right at the outset, on Monday.

Uncertainty remains regarding how the Brexit will proceed and the impact that it will have the region and the global economy as a whole. Central banks around the globe continue to assure investors that they are ready, willing and able to step in when necessary.

Bank of England Governor Mark Carney hinted at providing further stimulus in a speech on Thursday.

In remarks to business leaders, Carney said a material slowing in economic growth now looks likely to be the central forecast in reaction to the so-called Brexit.

Carney subsequently said the deteriorating economic outlook will likely require some monetary policy easing over the summer.

The euro area is exposed to a number of uncertainties both external and internal, Peter Praet, executive board member of the European Central Bank said Friday.

He cautioned that the uncertainty originating from the UK referendum could weigh on economic confidence and partly reverse the recent improvements in investment and consumption.

It is essential to swiftly establish an orderly process that governs the path towards a new post-referendum steady state so as to allow households and firms to swiftly adjust their inter-temporal economic decisions to the new environment, he said at the Financial Times Festival of Finance in London.

Michael Gove, a surprise candidate for the Tory Leadership and new U.K. Prime Minister, said Friday that he was in the fray out of conviction.

In a speech made to make his case for the top position, Gove said, "I had to stand up for my convictions."

The Justice Secretary, who campaigned for the U.K. to leave the European Union, surprised many on Thursday when he threw his hat into the ring, after repeatedly saying that he did not want to become the PM.

He was widely expected to back former London Mayor and lead "Leave" campaigner Boris Johnson, who bowed out of the race after the former's surprise bid.

The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.64 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.39 percent.

The DAX of Germany climbed 0.99 percent and the CAC 40 of France rose 0.86 percent. The FTSE 100 of the U.K. gained 1.13 percent and the SMI of Switzerland finished higher by 0.21 percent.

In Frankfurt, Temenos Group AG jumped 4.57 percent after Standard Chartered Bank has selected its wealth management program.

Volkswagen increased 4.76 percent and Daimler gained 2.32 percent. BMW finished higher by 3.21 percent and car parts maker Continental added 3.51 percent.

ThyssenKrupp leaped 5.52 percent and Salzgitter advanced 4.71 percent.

Deutsche Bank climbed 1.87 percent, but Commerzbank dipped 0.07 percent.

In Paris, Peugeot increased 6.70 percent and Renault rose 4.73 percent. Car parts maker Valeo also gained 5.12 percent and tire maker Michelin climbed percent.

Technip advanced 2.43 percent and Total added 0.86 percent.

In London, mining giant BHP Billiton dropped 0.30 percent after suffering a fresh setback regarding the Samarco dam incident in Brazil.

Fresnillo jumped 7.06 percent and Randgold Resources rose 4.34 percent on rising gold prices.

Berkeley Group advanced 5.19 percent and Persimmon added 6.62 percent. Taylor Wimpey finished up by 5.29 percent and Barratt Development gained 2.37 percent.

Eurozone unemployment declined as expected in May to the lowest since July 2011, Eurostat reported Friday. The jobless rate fell to 10.1 percent in May, as expected, from 10.2 percent in April. This was the lowest rate registered since July 2011.

The recovery in the euro area manufacturing sector gathered momentum in June, survey results from Markit showed Friday. The final manufacturing Purchasing Managers' Index rose more than initially estimated to 52.8 in June from 51.5 in May. This was the fastest growth in six months. The flash score was 52.6.

The British manufacturing sector logged a moderate improvement in June, driven by solid acceleration in new work and output, results of a survey, which received almost all responses ahead of the "Brexit" vote, showed Friday.

The Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index rose to 52.1 from a revised reading of 50.4 in May, its highest level since January, Markit Economics said. Economists had expected a score of 50.1. China's manufacturing activity remained weak, largely reflecting subdued foreign demand, while the services sector expanded notably in June.

The official factory Purchasing Managers' Index came in at 50 in June, in line with expectations, but down from 50.1 in May, data from the National Bureau of Statistics and the China Federation of Logistics and Purchasing showed Friday.

Meanwhile, the Caixin manufacturing PMI dropped to 48.6 in June from 49.2 in May, signaling the biggest contraction in four months, survey results from Markit revealed.

The score was expected to remain unchanged in June. A reading below 50 indicates contraction in the sector.

On the other hand, the official non-manufacturing PMI rose to 53.7 from 53.1 a month ago.

Manufacturing activity in the U.S. registered growth for the fourth consecutive month in June, the Institute for Supply Management revealed in a report on Friday, with the index of activity in the sector rising by much more than expected.

The ISM said its purchasing managers index jumped to 53.2 in June from 51.3 in May, with a reading above 50 indicating growth in the manufacturing sector. Economists had expected the index to inch up to 51.5.

Construction spending in the U.S. unexpectedly decreased in the month of May, according to a report released by the Commerce Department on Friday. The report said construction spending slid 0.8 percent to an annual rate of $1.143 trillion in May from the revised April estimate of $1.152 trillion.

The drop in construction spending came as a surprise to economists, who had expected spending to climb by 0.6 percent.