European shares rose on Friday with the pan-European FTSEurofirst 300 index, which had fallen 2.1 percent on Thursday, climbing back up 2.2 percent in early trading. The euro zone’s blue-chip Euro STOXX 50 index also advanced 2 percent.
Despite the rise, the FTSEuro first was still down 2.3 percent from the end of last week following setbacks dealt to the market by the Volkswagen (VLKAY) calamity as well as signs of an additional slowdown in China.
Volkswagen, the car maker that caused more than 30 billion euros to be wiped out of the sector’s market value, rose 3.6 percent as the company named Matthias Mueller, the head of its Porsche sports car brand, as its new chief executive.
The auto sector rose 2.49 percent, but still closed its worst week in four years.
VW Up Slightly
VW rival, BMW, also rose 4.5 percent after German car magazine Auto Bild clarified an earlier report saying that it had no evidence of data manipulation at BMW.
Some investors are still positive on the longer-term outlook for European shares given signs of economic improvement and stimulus measures from the European Central Bank.
According to Ali Miremadi, fund manager at Taube Hodson Stonex Partners, “We are positioned for improvements in domestic consumption in Europe, particularly in countries such as Spain and Italy, which already show considerable signs of improvement, and also in France where valuations are low and there are early signs of a belated recognition of the need for reform.”
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