European shares rise as defensive stocks rise, but end week lower

European shares rose on Friday, with a boost from defensive sectors after expectations of an economic recovery in China, a major trading partner, were bolstered by more stimulus from the local central bank. Still, the European market registered a fall in the week.

China’s central bank cut its five-year prime rate lending by 15 basis points, more than expected, improving the mood of the global market even as Covid-19 cases rose in Shanghai.

Papers from travel and tourism, financial services, healthcare and utilities led gains in Europe and rose between 1.5% and 2.0%, which made the STOXX 600 close up 0.73% at 431.10 spots.

For the week, however, the pan-European index was down 0.5%.

“Perhaps it’s not surprising that we have a bit of a recovery today, given the good news from China and how we’ve had some very negative days this week,” said Jonathan Bell, chief investment officer at Stanhope Capital.

Over the week, European retail and food and beverage stocks lost 2.2% and around 5%, respectively, while mining companies outperformed and gained 4.4%.

• In London, the Financial Times index advanced 1.19%, to 7,389.98 points;
• In Frankfurt, the DAX index rose 0.72% to 13,981.91 points;
• In Paris, the CAC-40 index gained 0.20% to 6,285.24 points;
• In Milan, the Ftse/Mib index appreciated by 0.12%, at 24,095.00 points;
• In Madrid, the Ibex-35 index registered an increase of 0.93%, to 8,484.50 points;
• In Lisbon, the PSI20 index rose by 0.28%, to 5,921.16 points.