European Stocks Edge Higher, Banks Gain Ahead of Trump Inauguration

Frankfurt (Jan 20)  European stocks were little-changed Friday in thin volumes are investors remained cautions in advance of the inauguration speech from President elect Donald Trump and increasing questions over the Brexit ambitions of the U.K. government.

The Stoxx 600 Europe Index, the broadest measure of regional share performance, slipped 0.28% to 361.85 points by 08:45 GMT, but there was no clear trading theme outside of a larger global equity market caution. Britain's FTSE 100 added just a couple of points in the opening 45 minutes of trading, while Germany's DAX index was marked about 10 points higher. Bank shares gained in Europe, however, with the Stoxx Europe 600 Banks index rising 0.32% led by gains in Germany for Deutsche Bank (DB) and Commerzbank  (CRZBY) .

Heineken NV  (HEINY) shares were an early mover of note after the brewer confirmed it's in talks to buy Brazil's second-largest brewer from Japan's Kirin Holdings Company Ltd.

Heineken shares edged 0.3% to €70.81 in early trading in Amsterdam but have lost around 4.75% over the past three months. Stock in the Japanese brewer closed up 1.28% in Toyko at ¥1,895.

While there are no significant corporate earnings scheduled, the U.K.'s Office for National Statistics will publish December retail sales figures at 09:30 GMT that will provide a key glimpse into the state of consumer confidence in Europe's third-largest economy.

Overnight in Asia, stocks were mixed despite better-than-expected economic data from China and a weaker U.S. dollar, which pared Thursday's gains following a speech in California from Federal Reserve Chairwoman Janet Yellen. Japan's Nikkei 225 edged 0.34% higher, but will end the week's trading down 0.8%. South Korea's KOSPI slipped -0.3% to 2,065.61 while Australia's S&P/ASX fell -0.7% to 5,654.8 points. The region-wide MSCI Asia ex-Japan index was marked -0.15% lower.

SOURCE: Reuters