Markets & Finance News

European shares posted their best weekly gains of 2017 of Friday, although they were down on the day following disappointing company updates.

European shares dropped on Friday following disappointing company updates, with WPP falling after giving a cautious outlook and Berendsen plunging on its results.

European shares slipped in early trading on Friday following some poor company updates, with WPP falling after painting a cautious picture about its outlook and Berendsen plunging following disappointing results.

* Disappointments from Capita, Travis Perkins weigh (Adds quotes and detail, updates prices at close)

* Eyes on Luxottica's drop after lukewarm results (Updates)

European shares steadied early on Thursday, pausing after a strong rally in the previous session, with strong earnings updates driving shares in Melrose Industries and Subsea 7.

* Basic resources, defence stocks also in demand (Adds details, closing prices)

* Covestro sinks as Bayer sells shares (ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets)

European shares gained on Wednesday, with results driving specific stock moves, while basic resources were the top sector performers after U.S. President Donald Trump pledged $1 trillion of infrastructure spending in his first speech to Congress.

* Burberry surges as activist investor buys stake (Adds details, closing prices)

* Yellen signals rate hike in March, U.S. stocks up for 6th week

Speculators reduced bullish bets on the U.S. dollar in the latest week, pushing net longs to their lowest since early October, according to Commodity Futures Trading Commission data released on Friday and calculations by Reuters. The value of the dollar's net long position totaled $13.01 billion in the week ended Feb. 28, from $15.02 billion the previous week. Analysts said this week's decline in net long dollar positioning could be temporary in the wake of stronger signals by the Federal Reserve that it may raise rates this month. On Friday, Fed Chair Janet Yellen gave her strongest signal yet that the U.S. central bank could nudge rates higher when it meets this month. "At our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate," Yellen said at a business luncheon in Chicago. Several of Yellen's colleagues at the Fed have also been signaling a move in March the past several weeks. "The (dollar) bulls are finally listening to the cohesiveness of Fed officials who have been saying all along (doves and hawks) that conditions are prime for tightening," said Kathy Lien, managing director of FX strategy at BK Asset Management in New York. The dollar fell on Friday in the wake of Yellen's remarks, but that is more due to profit-taking since traders before the Fed chair's remarks wagered that she would strike a hawkish tone. According to Fed fund futures date, the odds of a rate hike this month sits at 90 percent, compared with 40 percent the week before. The Reuters calculation for the aggregate U.S. dollar position is derived from net positions of International Monetary Market speculators in the yen, euro, British pound, Swiss franc and Canadian and Australian dollars. Japanese Yen (Contracts of 12,500,000 yen) $5.545 billion Feb. 28, 2017 Prior week week Long 29,012 29,954 Short 79,029 80,116 Net -50,017 -50,162 EURO (Contracts of 125,000 euros) $6.763 billion Feb. 28, 2017 Prior week week Long 143,584 130,981 Short 194,748 189,232 Net -51,164 -58,251 POUND STERLING (Contracts of 62,500 pounds sterling) $5.468 billion Feb. 28, 2017 Prior week week Long 43,329 38,253 Short 114,000 104,605 Net -70,671 -66,352 SWISS FRANC (Contracts of 125,000 Swiss francs) $1.469 billion Feb. 28, 2017 Prior week week Long 3,569 6,945 Short 15,383 15,881 Net -11,814 -8,936 CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars) $-2.263 billion Feb. 28, 2017 Prior week week Long 63,125 58,780 Short 33,035 34,196 Net 30,090 24,584 AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars) $-3.975 billion Feb. 28, 2017 Prior week week Long 95,696 88,768 Short 43,781 55,246 Net 51,915 33,522 MEXICAN PESO (Contracts of 500,000 pesos) $1.139 billion Feb. 28, 2017 Prior week week Long 39,057 35,125 Short 84,840 91,606 Net -45,783 -56,481 NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars) $-0.211 billion Feb. 28, 2017 Prior week week Long 37,198 35,252 Short 34,261 32,094 Net 2,937 3,158 (Reporting by Gertrude Chavez-Dreyfuss, editing by G Crosse and Lisa Shumaker)

Speculators reduced bullish bets on the U.S. dollar in the latest week, pushing net longs to their lowest since early October, according to Commodity Futures Trading Commission data released on Friday and calculations by Reuters.

* Poll gain for Macron adds to support for euro (Adds details from Yellen speech, quotes, updates prices)

U.S. Treasury yields hit session highs before flattening while stocks were largely unchanged on Friday after Federal Reserve Chair Janet Yellen said the Fed is set to raise its benchmark interest rate this month as long as economic data on jobs and inflation holds up.

World equity markets edged off record highs and the U.S. dollar retreated on Friday after two days of gains as cautious investors held back amid mounting expectations for a U.S. interest rate hike in March.

The worst drought to hit Sir Lanka in 40 years may cost the government up to 40 billion rupees ($264.7 million), but shoud not worsen the fiscal deficit, Finance Minister Ravi Karunanayake said on Friday.

The dollar weakened against a basket of major currencies on Friday ahead of a speech by Federal Reserve chief Janet Yellen that could affirm expectations for an interest rate hike on March 15.

The Russian central bank said on Friday it sees room for a rate cut in the first half of 2017 as inflation slows down quicker than expected.

The dollar stalled after two days of strong gains on Friday, with nerves around a speech by Federal Reserve chief Janet Yellen due later in the day adding to factors that have held back a broader rally this year.