European shares skidded yesterday, winded by unexpectedly weak US jobs numbers and poorly received sales guidance from chip leader Intel, but markets still closed up on the week after touching fresh 2003 highs.
French chemical group Rhodia, UK property firm Canary Wharf and Finnish paper groups rose, but technology was hit hard as chip-related shares sank. An advance in heavyweight oils and Wall Street recouping some of its opening drop also limited European stock-market losses.
With little in the way of corporate news scheduled for next week, investors are hunkering down for the US Federal Reserve meeting on Tuesday to discuss interest rates. Yesterday's weaker-than-expected jobs figure is likely to keep the central bank from signalling a shift in stance towards possible higher rates, despite the economy growing at its fastest pace in nearly 20 years.
"I can't see what will change regarding the Fed. It will not change rates and its statement will be quite benign," said Michael O'Sullivan, a strategist at State Street Global Advisers.
European shares were unnerved at times this week as the dollar plunged to record lows against the euro, and O'Sullivan said if the greenback eases below $1.22, it could set in train an extended sharp slide.