European Stocks Close Higher On Strong U.S. Jobs Data

2024-10-01 1070
(fxcue news) - European stocks ended higher on Friday with investors cheering upbeat U.S. jobs data. Geopolitical tensions persisted, but that did not deter investors from picking up several frontline stocks. In addition to reacting to U.S. jobs data and following geopolitical news, investors also digested a slew of economic data from the European region. The pan European Stoxx 600 climbed 0.44%. Germany's DAX and France's CAC 40 gained 0.55% and 0.85%, respectively. The U.K.'s FTSE 100 edged down 0.02%, while Switzerland's SMI ended down 0.13%. Among other markets in Europe, Austria, Belgium, Finland, Greece, Iceland, Netherlands, Norway, Poland, Russia, Spain, Sweden and Turkiye closed higher. Portugal edged up marginally, while Denmark closed weak. In the UK market, Natwest Group, Schrodders, Standard Chartered, Croda International and Barclays climbed 3 to 4%. EasyJet, DCC, Lloyds Banking Group, BP, Centrica, M&G, IAG, Mondi, BT Group, Antofagasta, Beazley, IHG, WPP, Weir Group and Fresnillo gained 1 to 2.7%. Spirax Group, SSE, JD Sports Fashion, Experian, AstraZeneca, Severn Trent, Segro, National Grid, Relx, British Land, Convatec Group and Halma lost 1 to 3.4%. In the German market, Siemens Energy, Volkswagen, Deutsche Bank, Continental, Infineon, Siemens, Commerzbank, BMW, BASF, Daimler Truck Holding, Porsche, Mercedes-Benz and Hannover Rueck gained 1 to 3.5%. RWE, Deutsche Boerse, Merck, Siemens Healthineers, Symrise, E.ON and Sartorius closed with sharp to moderate losses. In the French market, Accor rallied nearly 3.5%. Renault, Teleperformance, Vinci, Societe Generale and Veolia gained 2 to 3%. Bouygues, Saint-Gobain, Stellantis, TotalEnergies, Edenred, Publicis Groupe, BNP Paribas, Michelin, Sanofi, AXA, Essilor and Credit Agricole ended up 1 to 2%. Shipping firms such as Moeller-Maersk and Hapag Lloyd plunged 5.6% and 16% respectively, due to a worsening situation in the Middle East. Denmark's DSV surged 6.7% after the logistics giant raised $5.5 billion in a share issue to partially finance its acquisition of Schenker. Italian energy major Eni S.p.A. gained about 1.5% after it secured the U.K. Government's commitment and funding for the granting of an Economic License for the Liverpool Bay CO2 transport and storage or T&S project. In economic news, Germany's construction sector activity contracted at the slowest pace in 16 months in September, survey results from S&P Global showed on Friday. The construction Purchasing Managers' Index rose to 41.7 from 38.9 in the previous month. This was the highest since May 2023. However, the score remained below 50.0, indicating contraction. The UK construction activity posted its fastest expansion in nearly two-and-a-half years in September on improving output and new order growth amid falling interest rates, survey data from S&P Global revealed. The construction Purchasing Managers' Index registered 57.2 in September, up from 53.6 in August. The reading was forecast to climb moderately to 53.1. The index has remained above the neutral 50.0 threshold for the seventh straight month and the reading suggested the steepest rate of growth in 29 months. Data from the statistical office INSEE showed France's industrial production rebounded in August driven by a strong rise in transport equipment output. Industrial output grew 1.4% on a monthly basis in August, faster than the 0.2% increase in July. Output was forecast to grow 0.3%. Manufacturing output advanced 1.6%, in contrast to the 0.2% fall in the previous month. UK new car registrations increased in '74' plate change month of September as heavy EV discounting shores up demand, the Society of Motor Manufacturers and Traders said. New car sales rose 1% to 275,239 units in September. In what is traditionally a bumper month for new car registrations, second only to March, the performance was the best since 2020. Data from the U.S. Labor Department said non-farm payroll employment jumped by 254,000 jobs in September after climbing by an upwardly revised 159,000 jobs in August. Economists had expected employment to rise by 140,000 jobs compared to the addition of 142,000 jobs originally reported for the previous month. The report also showed the unemployment rate edged down to 4.1% in September from 4.2% in August. Economists had expected the unemployment rate to remain unchanged.
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