European Stocks Advance to One-Week High After U.S. Jobs Report

Stoxx 600 Climbs to Session’s High

European stocks advanced on Friday to close at their highest level this week after data showed U.S. employers added the most workers in four months.

Building on an earlier report that signaled a stronger euro-area economy, the Stoxx Europe 600 Index rose 0.6 percent to 364.07 in a broad-based rally. Only the basic-resources sector lost ground, with mining stocks dropping along with metal prices following lower-than-expected China macroeconomic data. The Euro Stoxx 50 Index added 0.6 percent, moving further away from a key support level representing its 50-day moving average.

  • U.S. employers added 227,000 workers last month, well above the median forecast of 180,000 in a Bloomberg survey of economists, and following a 157,000 increase in December. The jobless rate however rose to 4.8 percent, and average hourly earnings grew 2.5 percent from January 2016, the weakest since August.
  • The euro-area economy started the year on a solid footing, with rising orders bolstering job creation, according to IHS Markit. A composite Purchasing Managers’ Index remained at 54.4 in January -- the highest since 2011.
  • European mining stocks bucked the trend, with the Stoxx 600 Basic Resources index closing 2.7 percent lower after Chinese economic data missed estimates and the nation’s monetary policy was tightened. The sector index has been falling toward a key support level representing the 50 percent retracement of the index’s slump from the peaks of 2011 to the lows of early 2016.
  • China’s central bank raised interest rates it charges in open-market operations and on funds lent via its Standing Lending Facility as it shifts to reining in asset prices and inflation.

— With assistance by Elena Popina

    Before it's here, it's on the Bloomberg Terminal.