LONDON (The Deal) -- European markets traded higher Friday, following an initial dip in Frankfurt after a sharp drop in German factory orders in December. Other markets hung fire pending the outcome of the U.S. nonfarm payroll figures to be released later in the day.
London's FTSE 100 was up 0.61% 5,934.45, while Frankfurt's DAX had recovered from its early dip to rose 0.37% to 9,428.10. in Paris, the CAC 40 was up 0.71% at 4,258.50.
In London, miner Anglo American (AAUKF) rose strongly again, following Thursday's 20% rise, hitting 362.10 pence, an increase of 10.3%. Traders said to be using the rise in metal prices from a weaker dollar to unwind short positions on mining stocks. Anglo American was the biggest riser in London, but Glencore (GLNCY) -- a miner and commodities trader -- was the second biggest, up 4.78% at 104.45 pence.
It was a less auspicious morning for spread-betting company CMC Markets, though. The stock priced its initial public offering this morning at 240 pence, but was under water by mid-morning in grey market trading at 239 pence. The stock trades under the ticker CMCX and started its new life as a public company with a market capitalization of £691 million ($1 billion).
In Amsterdam, steel-maker ArcelorMittal(MT) - Get Report dropped 5.64% to €3.48 after announcing a worse than expected 19.8% year-on-year decline in sales to $63.58 billion and a net loss of $7.95 billion including impairment charges to its mining assets and iron ore sales. The slump overshadowed the announcement of a $4 billion debt reduction plan, including a $3 billion capital raising through a rights issue to existing shareholders and the €875 million ($979 million) sale of its 35% stake in Spanish engineering company Gestamp. It will also receive a €10 million dividend from Gestamp. It will still continue to supply steel to Gestamp, through a sister company, Gonvarri, in which ArcelorMittal will retain a 35% stake.
Meanwhile India's Tata Steel staged a small recovery on the Mumbai exchanges this morning after Thursday's setback, rising about 3.5% in mid-afternoon trading. The company had announced an after-tax loss of 21.3 billion rupees ($315 million) in its third quarter, taking into account hefty write-downs on its European businesses.
Swedish truckmaker Volvo (VLVLY) was up 1.9% at 80.20 kronor in Stockholm, despite a 20% drop in orders for the fourth quarter. It said it will cut production in the United States, its second biggest market after China, after a drop in sales. But it believes China will be flat this year after a sharp decline in 2015, while heavy truck sales in Europe may pick up.
French bank BNP Paribas was up 5.03% at €43.03, despite joining the ranks of European banks to miss analysts' earnings forecasts for the fourth quarter. It announced net profits of €665 million, well below last year's fourth-quarter number of €1.38 billion, and analysts' estimates of €864 million. But market sentiment was assuaged by an increased dividend payment of €2.31 a share for 2015, up from €1.5 a share in 2014.
In Asia, Taiwan's Hon Hai Precision Industry Co., which does business as Foxconn, is battling to acquire Japanese electronics group Sharp for 659 billion yen ($5.6 billion). Sharp closed up 10% at 176.0 yen.
In Tokyo, the Nikkei 225 closed down 1.32% at 16,819.59, while the Topix was off 1.43% at 1,368.97. In Hong Kong, the Hang Seng finished the day up 0.55% at 19,288.17, while in China, the combined Shanghai and Shenzhen CSI 300 was off 0.7% at 2,963.79.