Aug 9 2024: European shares climbed 1% on Friday, aiming for a fourth consecutive day of gains and recovering almost all of their losses from a tumultuous week driven by recession fears in the US.
The STOXX 600 index advanced 1%, surpassing the 500 mark and marking its longest winning streak since May 15.
Investor sentiment improved following the US jobs report on Thursday, which eased concerns stemming from July’s weak labor market data that had triggered a financial market selloff.
Major European indices saw gains: France’s CAC 40, Germany’s DAX, Spain’s IBEX 35, and the UK’s FTSE 100 all increased between 0.6% and 1.2%.
“Investors are buying the dip, but with market liquidity low, we might experience more volatility in the near future, potentially leading to further setbacks for stock markets,” said Teeuwe Mevissen, senior macro strategist at Rabobank.
On the economic front, German inflation rose to 2.6% in July, matching preliminary data, while Italian HICP fell 0.9% month-on-month in the same period. The Italian FTSE MIB index gained 0.9%.
All major European sub-indexes were up, with the real estate sector leading the way. LEG Immobilien surged 4.8% after reporting a smaller second-quarter loss.
The travel and leisure sector climbed 2.1% due to gains by Entain and Ryanair. Ryanair announced a share buyback of up to 800 million euros ($872.5 million). Basic resources also rose 2.1% as base metal prices rebounded following positive US economic data.
Notable movements included Lotus Bakeries, which jumped 7% after reporting higher first-half revenue and earnings. Conversely, UK drugmaker Indivior dropped 3.1% following a price target cut by brokerage Jefferies.
