European Stocks Rise to Record as Tech Shares Gain on U.S. Data

May 07
23:04 2021

(Bloomberg) — European equities surged to a record on Friday, with the technology sector leading the advance, as weaker-than-expected U.S. jobs data eased concerns about faster inflation and that stimulus measures may be scaled back.

The Stoxx Europe 600 Index climbed 0.9% at the close, with most sectors in the green. Tech shares rose 2.2%, while travel shares outperformed too. Miners rallied with base metals.

Earnings moved the needle on some stocks. Adidas AG jumped 8.4% after lifting its 2021 sales forecasts. Siemens AG also rose after raising its revenue and profit guidance for the year, boosting the DAX Index.

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Europe’s main equity benchmark accelerated gains after a volatile start to the week that was spurred by investors’ concerns about faster U.S. inflation and a Covid-19 resurgence in parts of Asia. Still, domestic corporate profits have boosted sentiment, sending the Stoxx 600 up 1.7% this week. And U.S. jobs growth significantly missed forecasts in April, filling investors with confidence that stimulus measures will remain in place.

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“Today’s disappointing jobs numbers will heighten investor caution and raise concerns around the resilience of the U.S. labor market — and to what extent the pace of the Covid-19 vaccination program will boost economic activity and employment,” said Richard Flynn, U.K. managing director at Charles Schwab. “However, across economic metrics — from GDP to retail sales to job growth — boom conditions are evident.”

Among notable movers, Meggitt Plc jumped 8.3% after a report that aerospace company Woodward Inc. is working with advisers on a possible deal for the U.K. firm.

Eleven Stoxx 600 companies traded without the right to dividend today, including Axa SA and Deutsche Post AG, shaving off about 0.3 points from the benchmark.

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