Key facts
- Europe's STOXX 600 index reached a record high on Friday.
- The STOXX 600 was on track for its largest weekly gain in over a month.
- Germany's DAX index also achieved an all-time high.
- The rally broadened to cyclical stocks, including industrials, banks, and financial services.
- Expectations for an imminent U.S. interest rate hike were pushed back following softer U.S. jobs data.
Europe's benchmark STOXX 600 index reached a record high on Friday and was on track for its largest weekly gain in over a month. The rally was supported by gains in cyclical stocks, including industrials, banks, and financial services, as investor expectations for an imminent U.S. interest rate hike were pushed back.
The pan-European STOXX 600 was up 0.5% at 651.52 points by 0709 GMT, heading for its biggest weekly rise since mid-May. Germany's DAX index led regional gains with a 0.9% jump, also notching an all-time high.
Siemens, a German industrial group, jumped 1.2% and provided the biggest boost to the DAX after brokerage Kepler Cheuvreux upgraded the stock to 'hold' from 'reduce'. Defence stocks saw a 0.8% increase, with investors anticipating increased defence spending amid geopolitical tensions.
The rally, which had previously been concentrated in tech stocks, has broadened out, aided by easing Middle East tensions. A softer-than-expected U.S. jobs report on Thursday also contributed to dialing back market expectations for a Federal Reserve rate hike, while global business activity reports broadly indicated a resilient economy.
Among other stocks, French voucher and benefits company Pluxee gained 6.4% after reporting a smaller-than-expected drop in organic sales in the third quarter.