Europe Stocks Rise While Euro Drops After Brisk U.S. Jobs Growth
(Bloomberg) -- European stocks advanced, getting a push from a declining euro after data showed the U.S. created more jobs than forecast in July.
The Stoxx Europe 600 Index rose 1 percent at the close of trading. The euro’s rally has been seen as a headwind for the region’s equities, as it makes exports relatively more expensive for foreign buyers. Quoted at about $1.1752 Friday, it’s still fairly close to the likely “pain threshold” of $1.20 identified in July in a Bloomberg survey of 23 strategists and fund managers.
- The U.S. labor market hit its stride in July, as employers added workers at a solid clip, the jobless rate matched a 16-year low and monthly wage growth picked up.
- In the European stock market, all 19 industry sectors climbed after the labor reports; food and beverage stocks rallied 1.7 percent, while property firms added 0.4 percent.
- Among shares active on earnings reports, Swiss Re AG dropped 3.1 percent as the world’s largest reinsurer reported a decline in earnings as pricing pressures continued to weigh on margins.
- Royal Bank of Scotland Group Plc climbed 2 percent after posting better-than-expected quarterly profit.