UPDATE 2-Cyclical rally, U.S. jobs data drive European stocks to 1-week high

  • Reuters
  • Stock Market News
UPDATE 2-Cyclical rally, U.S. jobs data drive European stocks to 1-week high
Credit: © Reuters.

(For a live blog on European stocks, type LIVE/ in an Eikon news window)

* Banks, automakers lead gains in Europe

* AB Foods jumps after positive comments on Primark

* U.S. payrolls rises better than expected in June

* Wirecard slumps as police raid headquarters

(Updates to market close)

By Sruthi Shankar

July 2 (Reuters) - European shares closed at a one-week high on Thursday as hopes of a COVID-19 vaccine and a better-than-expected rebound in U.S. hiring overshadowed concerns about surging coronavirus infections.

The pan-European STOXX 600 .STOXX rose 2%, easing slightly from highs hit after data showed the U.S. economy created a record 4.8 million jobs in June as more restaurants and bars resumed operations. .SX7P were the top gainers in Europe, jumping 4.3% to mark their best day since June 5, while other cyclical sectors such automakers .SXAP , chemicals .SX4P and insurance companies .SXIP gained between 2.5% and 3.4%.

Equity markets started the second half of the year on a positive note earlier this week, as a COVID-19 vaccine developed by German biotech firm BioNTech BNTX.O and U.S. giant Pfizer (NYSE: PFE ) PFE.N was found to be well-tolerated in early stage human trials, while business surveys showed a slump in global manufacturing eased in June. market response is likely to be positive, but inevitably tinged with growing concerns that the recovery is already losing steam," said Seema Shah, chief strategist at Principal Global Investors.

"With the closings having been reversed or paused across 40% of the U.S., July's job report may paint a much weaker story."

Raising risks of fresh lockdowns, new U.S. cases of COVID-19 jumped nearly 50,000 on Wednesday, according to a Reuters tally, marking the biggest one-day rise since the start of the pandemic. adding to concerns, Britain and the European Union failed to make progress in talks on post-Brexit relations this week due to major differences, officials said. individual movers, Associated British Foods ABF.L gained 4.1% after saying trading in its Primark fashion stores that reopened after the lockdown has been "reassuring and encouraging". Wirecard WDIG.DE slumped 35.4% after police and public prosecutors raided its headquarters in Munich and four properties in Germany and Austria. construction company BAM Groep BAMN.AS dropped 11.6% as it warned of a "significant" loss in the first half of the year.

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