European stocks closed mostly higher on Friday, with miners, travel & leisure, media and auto sectors among the best performers, after US President Donald Trump signalled a trade deal with Beijing could be reached soon and that both countries had a "very good chance to make a deal." On the other hand, weak PMI data from the UK and Euro Area pointed to another month of contraction in the manufacturing sector, while Services PMI figures also disappointed. The FTSE 100 jumped 88 points or 1.2%, amid a fall in sterling; the DAX 30 added 26 points or 0.2%; the CAC 40 gained 12 points or 0.2%; and the IBEX 35 advanced 41 points or 0.4%; while the FTSE MIB lost 20 points or 0.1%.

The British pound fell 0.7% to $1.2833 on Friday afternoon and was set for its biggest daily loss in nearly three weeks, after November's PMI data pointed to a deeper contraction in the manufacturing and service sectors and investors are also becoming more cautious ahead of December General Election.

The Kansas City Fed's Manufacturing Production Index fell to -5 in November 2019 from +8 in the previous month and compared with market forecasts of +9. The composite index, an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes, was unchanged at -3, driven by slower activity at durable goods plants, especially from decreases in primary metal, fabricated metal products, machinery, and computer and electronic products manufacturing. The new orders and employment indexes remained negative and the materials inventory index declined further. However, the shipments and supplier delivery time indexes expanded somewhat.

The University of Michigan's consumer sentiment for the US was revised higher to 96.8 from 95.7 in November of 2019 and compared with 95.5 in October. It is the highest reading in four months, nearly close to the average of 97 since the start of 2017. Consumer expectations improved and the current conditions subindex declined less than initially anticipated.

The IHS Markit US Services PMI rose to 51.6 in November 2019 from 50.6 in the previous month and above market consensus of 51.0, a preliminary estimate showed. Employment increased for the first time since August while new business remained historically weak. On the price front, service sector firms increased their selling prices at a faster rate, reportedly due to a slightly quicker rise in input costs. Looking ahead, business confidence fell, amid reports of less favorable demand conditions.

Wall Street traded slightly in the green on Friday after President Trump told Fox News that a trade agreement with China is "very close" and that the two countries have a "very good chance to make a deal." Meanwhile, Tesla shares slumped nearly 6%, after the company revealed its long-awaited electric pickup truck on Thursday. The Dow Jones was up 100 points or 0.4%; the S&P 500 gained 6 points or 0.2% and the Nasdaq traded 5 points or 0.1% higher around 2 PM NY time.

Retail sales in Canada decreased 0.1 percent month-over-month in September 2019, after an upwardly revised 0.1 percent gain in the previous month and matching market expectations. It was the first decline in retail trade in three months, as sales dropped at motor vehicle & parts dealers (-1 percent), namely new car dealers (-1.9 percent); and gasoline stations (-2.3 percent). On the other hand, receipts increased at food & beverage stores (1.2 percent), in particular at supermarkets & other grocery stores (1.1 percent) and beer, wine & liquor (3.2 percent); and building material & garden equipment and supplies dealers (3.3 percent). Year-on-year, retail trade went up 1 percent, slowing from an upwardly revised 1.3 percent rise in August. Considering the third quarter as a whole, retail sales advanced 0.5 percent, easing from a 1.1 percent gain in the prior quarter.

US crude oil prices dropped as much as 1.3% to $57.82 per barrel around 10:45 AM NY time on Friday, retreating from a near two-month high of $58.75 per barrel early this session, as optimism over a potential trade deal between the world’s two largest economies faded. Still, expectations that OPEC and its allies will extend supply cuts until mid-2020 to support the market and recent tensions in Iran and Iraq offered some support to prices. Brent crude oil slumped nearly 0.6% to $63.46 per barrel.

The EA economy faces a global environment that is marked by uncertainty, but it can also be a moment of opportunity if the bloc approaches the challenge in the right way, Lagarde said in her first speech as ECB President at the Frankfurt European Banking Congress. Ms Lagarde noted that the best way to respond to the challenges presented by trade tensions and technological disruption is to invest in the bloc's future, strengthen the common institutions and empowering the world’s second largest economy, while called on European governments to boost public investment.