European Stocks Gain After Solid US Labor Data; CAC 40 Rallies
European equities gained as a solid advance in US payrolls soothed worries about the health of the American labor market, while French stocks rallied after President Emmanuel Macron pledged not to resign.
The Stoxx Europe 600 Index ended the session 0.2% higher at a seven-week peak. Data showed the US job market returned to health last month after a storm- and strike-constrained October. The figures support the Federal Reserve’s view that it remains solid yet no longer a big source of inflation.
“One of big questions for the market is whether the Fed will be able to deliver the rate cut investors expect and these numbers are just spot-on for a soft landing scenario,” said Benoit Peloille, chief investment officer at Natixis Wealth Management.
Consumer products and automotive shares led gains while resources-related sectors were laggards. Among individual movers, Direct Line Insurance Group Plc surged after Aviva Plc reached a preliminary agreement to acquire the UK motor insurer.
Meanwhile, France’s CAC 40 blue-chip index outperformed its European peers with a rise of about 1.3% as optimism grew that the nation’s fractious parliament would eventually strike a deal on the budget. The benchmark notched its seventh straight session of gains, its longest run since February.
Source : Bloomberg
