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STOXX 600 recovers early losses on US jobs data relief

August 8, 2024


  • Novo rebounds on positive read-across from Lilly
  • Siemens jumps after profit beat
  • Allianz rises on Q2 beat
  • Deutsche Telekom up after increase in Q2 core earnings
  • STOXX 600 up 0.1%

Aug 8 (Reuters) – Europe’s benchmark stock index recouped early losses to close slightly higher on Thursday, helped by encouraging U.S. jobs market data and as the heavy-weight healthcare sector got a boost from Novo Nordisk’s recovery.

The STOXX 600 (.STOXX), opens new tab closed 0.1% higher, after a sharp early decline in technology stocks knocked the pan-European index down over 1% intraday.
Data showed weekly U.S. jobless claims fell more than expected, suggesting fears of a sharp weakening in the labour market, which in part had fuelled U.S. recession fears, were overblown.

“Just because the labour market is cooling off doesn’t mean we’re (U.S.) entering into a recession. While there has been renewed worry about the labour market, we believe it’s overblown,” said from Skyler Weinand, chief investment officer, Regan Capital.

As European stocks recovered after the data, Wall Street also enjoyed strong gains for the day.

The STOXX 600 has been volatile this week as investors evaluated fears of a potential U.S. recession and looked for clear macroeconomic signals, both at home and globally.

German inflation data, due on Friday, will give investors a clearer picture on Europe’s largest economy as it teeters on the verge of a recession.

Europe’s largest company by market value, Novo Nordisk (NOVOb.CO), opens new tab, rose 4.3%, recovering more than half of Wednesday’s near 7% slide, as rival Eli Lilly’s (LLY.N), opens new tab raised its annual sales forecast, boding well for the Danish drug maker.
Healthcare (.SXDP), opens new tab was among the top sectoral gainers, also boosted by a 8.3% jump in British drugmaker Hikma Pharmaceuticals (HIK.L), opens new tab on an upbeat annual outlook, while media (.SXMP), opens new tab was the worst hit sector.
Allianz (ALVG.DE), opens new tab gained 2% after the German insurer posted a better-than-expected rise in second-quarter net profit and said it was on track to meet its full-year target.
Siemens (SIEGn.DE), opens new tab rose 2.1% after beating quarterly earnings forecasts.
Deutsche Telekom (DTEGn.DE), opens new tab was up 1.9% after the telecom firm reported a 7.8% increase in its second-quarter core earnings, while Entain (ENT.L), opens new tab climbed 5% as the British gambling group raised its annual revenue forecast.
Meanwhile, valve maker Spirax-Sarco Engineering (SPX.L), opens new tab dropped 7.4% after results, while German sportswear maker Puma (PUMG.DE), opens new tab fell 4% as a raft of brokerage price-target cuts followed Wednesday’s dismal earnings.

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Reporting by Pranav Kashyap and Ankika Biswas in Bengaluru; Editing by Sonia Cheema, Varun H K and Christina Fincher

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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