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European Stocks Climb on Better-Than-Expected U.S. Jobs Data

This content was published on August 7, 2020 - 16:11

(Bloomberg) --

European stocks reversed earlier losses to climb after the U.S. jobs report for July beat estimates.

The region’s Stoxx Europe 600 benchmark rose 0.3% at the close, erasing a drop of as much as 0.5% as payrolls increased more than forecast, signaling the rebound in the world’s largest economy is making headway despite a surge in coronavirus cases. Telecom and technology shares led gains.

Stocks were down earlier after U.S. executive orders against China’s most popular mobile apps raised fears of a further escalation in trade tensions. Equities in the region remain about 4% below their post-lockdown peak reached in mid-July, and have since struggled to return above their 50-day moving average.

Cyclical stocks including miners, industrials and retailers have outperformed in the weeks since, further closing the gaping discount to defensives that had opened up as markets troughed in March.

Hikma Pharmaceuticals Plc was the region’s top-performing stock, rising 11% after forecasting stronger full-year sales than analysts had expected. Broker TP ICAP Plc trailed the market, falling 7.7% after cautioning of recent weakness in trading activity.

©2020 Bloomberg L.P.

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