European shares strengthened on Friday, brushing off signs of economic weakness as Spanish unemployment rose in August and Italian growth stalled in the second quarter.
Stocks in the UK were mixed with a rise in blue chips offset by a drop in midcaps. Utilities and Healthcare sectors led the gains on the FTSE 100 with telecoms and homebuilders the biggest drag.
A near £100m profit at Go-Ahead, the owner of Southern Rail operator Govia Thameslink Railway has been celebrated by investors with shares rising over 8%. However the results were met with indignation by Southern Rail travellers, especially in light of the £20m in taxpayer money that was just promised to improve services yesterday. CEO David Brown said the rail franchise overall had been robust with strong results in Southeastern and London Midland offsetting weakness in GTR.
The British pound strengthened after construction data suggested the industry almost pulled out of contraction in August. The UK construction PMI rose to 49.2, beating expectations of a rise to 46.1 from 45.9 in July.
Stocks in the US look set for a lower open as caution takes hold ahead of the release the August unemployment figures.
USA pre-opening levels
S&P 500: 3 points lower at 2,167
Dow Jones: 14 points lower at 18,405
Nasdaq 100: 4 points lower at 4,779
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