Europe Stocks Rise as Autos Lead Gains, With London Market Shut
European shares gained in early trading, before a U.S. jobs report expected later on Friday that’s expected to show a record drop in payrolls. Markets in London are closed for a public holiday.
The Stoxx 600 Index was up 0.7% by 8:16 a.m., London time. The autos sector was the top performer, climbing 1.6%. Engineering giant Siemens AG rose as much as 4.9%, despite abandoning its 2020 guidance. ING Groep NV saw profit drop to the lowest since 2014. Shares in the Dutch bank gained as much as 7.3% as investors assessed lower-than expected loan-loss provisions.
A combination of weak data and rising markets is “the name of the game,” said Lippo Suominen, chief strategist at Finnish asset manager FIM. “Lots of money is just looking for a place to invest in, and since it’s clear that zero rates are here to stay, the money flows into equities, which is the most liquid risky asset.”
Friday brings the U.S. jobs report for April, expected to show a severe impact from the coronavirus pandemic. The median forecast in a Bloomberg survey of economists calls for a 21 million plunge in payrolls.
“Today’s U.S. job market report could be a show-stopper,” said Andreas Lipkow, Comdirect Bank strategist.
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