Europe's STOXX 600 closed at a record 660.25 points on Friday, its fourth straight weekly advance, as strong corporate earnings and a weak U.S. jobs report lifted sentiment. Technology and healthcare stocks led the gains, Kingspan surged on a raised profit forecast, and Munich Re slipped despite higher profit.
Europe's STOXX 600 rallied to a fourth consecutive record close on Friday, closing 0.3% higher at a record 660.25 points and marking its fourth straight weekly advance. The gain capped a busy earnings week that pushed the benchmark to multiple record highs, with expectations of a potential U.S.-Iran agreement also supporting sentiment through the week.
Weak US jobs data boosts the rally
Investors parsed a U.S. nonfarm payrolls report that showed the world's largest economy surprisingly shed jobs last month, reducing the perceived chance of a rate hike by the Federal Reserve in September. Michael Hewson, senior market analyst at iForex, said "I don't think there's one reason behind this rally in European markets." He added that the payrolls number simply gave the move an extra boost.
Technology and healthcare stocks lead gains
Technology shares added 1.9% in the session, tracking gains from Wall Street, and were the best-performing sector on the STOXX 600 this week. Healthcare stocks rose 1.2%, with Genmab jumping 6.5% after the cancer drugmaker reported higher first-half revenue and raised its full-year outlook. Novo Nordisk and Abivax gained 3.9% and 3.5%, respectively.
Companies in the STOXX 600 are now expected to report second-quarter earnings growth of more than 22%, the strongest since Q3 2022, according to data compiled by LSEG.
Kingspan surges, Munich Re slips despite higher profit
Kingspan surged 17.8% after results, topping the STOXX 600 gainers, as the building materials firm raised its profit forecast on booming data-centre demand. Czech defence firm CSG fell 8% despite reporting first-half revenue above expectations, while miners added 0.3%, lifted by firmer prices of precious and base metals.
Insurers dipped 0.2% after Munich Re slid 1.4% despite reporting a 6% rise in second-quarter net profit, beating expectations of a decline. Elsewhere, Stellantis dropped 1.7% after Bernstein cut the automaker's rating to "underperform" from "market perform."
Iran proposes new shipping restrictions
On the geopolitical front, Iran, working with Oman, proposed banning vessels deemed hostile from the Strait of Hormuz and imposing steep fines on those breaching the rules.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
