FRANKFURT: Europe’s STOXX 600 rallied to a fourth consecutive record close on Friday, led by technology stocks and a largely positive slate of corporate earnings, while softer US jobs data further supported sentiment.
The pan-European STOXX 600 closed 0.3 percent higher, reaching a record 660.25 points and marking a fourth consecutive weekly advance.
Markets capped a busy earnings week that pushed the benchmark to multiple record highs, while expectations of a potential US-Iran agreement also supported sentiment throughout the week.
Technology shares added 1.9 percent in the session, tracking gains from Wall Street, and were the best performing sector on the STOXX 600 this week. Investors parsed the US nonfarm payrolls report that showed the world’s largest economy surprisingly shed jobs last month, reducing the perceived chance of an interest rate hike by the Federal Reserve in September.
“I don’t think there’s one reason behind this rally in European markets. All today’s payrolls number has done is basically given it an extra boost,” said Michael Hewson, senior market analyst at iForex.
Healthcare stocks rose 1.2 percent. Genmab jumped 6.5 percent after the cancer drugmaker reported higher first-half revenue and raised its full-year outlook.
Novo Nordisk and Abivax gained 3.9 percent and 3.5 percent, respectively. Companies in the STOXX 600 are now expected to report second-quarter earnings growth of more than 22 percent, the strongest since the third quarter of 2022, according to data compiled by LSEG.
Miners added 0.3 percent, lifted by firmer prices of precious and base metals. Insurers dipped 0.2 percent after Munich Re slid 1.4 percent despite reporting a 6 percent rise in second-quarter net profit, beating expectations of a decline.
Elsewhere, Stellantis dropped 1.7 percent after Bernstein cut the Franco-Italian automaker’s rating to “underperform” from “market perform”.
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.
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