European shares rise on upbeat global mood, cyclicals jump


European shares climbed on Thursday, as encouraging economic data from across the globe and hopes of a COVID-19 vaccine lifted sentiment ahead of the crucial U.S. jobs data.

The German share price index DAX graph is pictured at the stock exchange in Frankfurt

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 25, 2020. REUTERS/Staff

REUTERS: European shares climbed on Thursday, as encouraging economic data from across the globe and hopes of a COVID-19 vaccine lifted sentiment ahead of the crucial U.S. jobs data.

The pan-European STOXX 600 rose 0.9per cent by 0716 GMT, in its fourth consecutive day of gains. Banks , automakers and travel & leisure were the top gainers, rising between 1.5per cent and 2per cent.

Financial markets entered the second half of the year on a positive note this week, as business surveys showed a coronavirus-induced slump in global manufacturing eased in June, while a COVID-19 vaccine was found to be well-tolerated in early stage human trials.

The U.S. payrolls data, due at 1230 GMT, is likely to show the economy created jobs at a record clip in June, although surging virus cases threaten to derail the recovery.

Among individual movers, Associated British Foods jumped 7.1per cent as it said that trading in its Primark fashion stores that reopened after lockdown has been “reassuring and encouraging”.

German fashion house Hugo Boss rose 1.4per cent after it appointed Tommy Hilfiger executive Oliver Timm as its chief sales officer.

Scandal-hit Wirecard slumped 25per cent after police and public prosecutors raided its headquarters in Munich and four properties in Germany and Austria.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Bernard Orr)



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